Cloud, SaaS spending manager Vertice raises $25M in Series B funding

Dive Brief:

Vertice, a London-based provider of software-as-a-service and cloud spending management services, has raised $25 million in a Series B funding round, the startup said last week.
The capital will be used to boost the company’s pace of product innovation and create over 150 new positions globally, according to a press release.
“Companies of all sizes are feeling the pain of wasted spend and Vertice is uniquely positioned to address the changing needs of CFOs,” Laurel Bowden, a partner at 83North, a London-based venture capital firm that co-led the funding round, said in the release.

Dive Insight:

Worldwide end-user spending on public cloud services is forecast to grow 20.4% to total $678.8 billion in 2024, up from $563.6 billion in 2023, according to Gartner.

Research unveiled by Vertice last September found that 55% of companies were spending more than they did in 2022 on cloud computing, with nearly a quarter (24%) describing it as a “significant increase.” More than half (55%) of finance executives who were polled blamed out-of-control cloud spending on a lack of transparency from tech leaders in the organization, with 44% saying they couldn’t get visibility into costs.

“These finance teams see cloud spend going up, but they don’t also know why, and they have no forecastability,” Vertice CEO Eldar Tuvey told CFO Dive at the time.

Finance leaders were almost three times as likely to be concerned about cloud costs than their tech peers, and more than twice as likely to be worried about getting visibility into the cloud, the research found.

Vertice was founded by its CEO and his brother in 2021 with a focus on helping companies to reduce SaaS spending. The startup announced in September that it was expanding its services to include cloud-infrastructure cost management.

The company is looking to expand in the U.S., Europe, Australia and Singapore as it also enters new markets such as Latin America and Southeast Asia, co-founder Roy Tuvey said in an emailed statement. “From a product perspective, we are investing in automation, intelligence, and integrations to make processes streamlined and more efficient for customers — providing them with deeper insights and control,” he said.

The recent funding round, which was also led by San Francisco, California-based Bessemer Venture Partners, increases Vertice’s total available cash reserves to $40 million, according to the press release. The company has now raised a total of $51 million since January 2022, it said.