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Tropic develops an intelligent procurement platform designed to streamline software acquisition and optimize spend for businesses. The company leverages AI-driven insights from over $18 billion in aggregated spend data, empowering finance and procurement teams with tools for contract management, vendor intake, and spend forecasting. Its technology provides clear action plans for new purchases and renewals, enabling organizations to gain visibility and control over their software expenditures while securing cost reductions.
The company was co-founded by David Campbell and Justin Etkin in 2019. Their insight for starting Tropic stemmed from personal frustration experienced while working at a rapidly scaling startup, observing significant inefficiencies and inherent inequities faced by buyers during the software purchasing process. They identified a critical need for a more transparent and advantageous procurement experience for organizations.
Tropic serves finance and procurement professionals across a range of companies seeking to manage and reduce their software costs effectively. The platform aims to transform procurement into a strategic function by providing an unbiased, data-backed approach to vendor negotiations and contract terms. Their long-term vision is to create a more equitable buyer’s market for technology, ensuring companies make informed and efficient purchasing decisions.
Tropic has raised $67.0M across 3 funding rounds.
Tropic has raised $67.0M in total across 3 funding rounds.
Tropic has raised $67.0M across 3 funding rounds. Most recently, it raised $40.0M Series B in February 2022.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Feb 1, 2022 | $40M Series B | Insight Partners | Notion Capital, Union Square Ventures, Rayfe Gaspar Asaoka | Announced |
| Aug 1, 2021 | $25M Series A | Hootan Rashidifard | Canaan Partners, Curie.bio, Endeavor Catalyst, Founder Collective, Insight Partners, Kapor Capital, Operator Partners, Shine Capital, The Finger Group, Daren Cotter, Scott Belsky, William Hockey | Announced |
| Apr 1, 2020 | $2M Seed | Founder Collective | Andreessen Horowitz, Battery Ventures, Coelius Capital, Curie.bio, Jenny Fielding, Scott Hartley, FabFitFun, General Catalyst, Greylock, Insight Partners, Operator Partners, Super{set}, The Finger Group, Torch Capital, TTV Capital, Alex Rodriguez, Adam Marchick, AMR Awadallah, Daren Cotter, Jarl Mohn, Kevin LIN, Mark Pincus, Mike Volpe, Nate Mitchell, Vivek Garipalli, Jason Finger, NAT Turner, Scott Belsky, William Hockey, Zachary Perret, Zach Weinberg, Company Ventures | Announced |
Tropic is a technology company building an AI-powered spend management platform that integrates unbiased market intelligence with procurement controls to help finance, procurement, IT, and accounting teams manage software and SaaS spend efficiently.[1][2][3][4] It serves over 500 customers including Zapier, Plaid, and Notion, managing $10 billion in spend and delivering over $300 million in savings by unifying data, automating workflows, detecting shadow IT, and providing negotiation insights from $15 billion+ in real-world transaction data.[2][3][4] The platform solves inefficiencies in software buying—such as lack of transparency, overpaying, compliance risks, and manual processes—by giving buyers leverage through AI-driven visibility, controls, and benchmarks, turning spend into a competitive advantage.[1][2][4]
Founded in 2019, Tropic has shown strong growth momentum: securing $2.1M seed, $25M Series A, and $40M Series B funding; doubling software revenue year-over-year since its 2023 SaaS launch; and expanding leadership with hires like CFO Russell Lester and CMO Liesl Geier.[1][2][5]
Tropic was founded in 2019 by David Campbell and Justin Etkin, who drew from their experiences in hyper-growth startups.[1][5] David, with sales expertise handling seven-figure accounts, saw buyers lacking tools and pricing transparency against well-equipped software vendors, and later witnessed enterprises cutting staff to afford renewals.[1] Justin, focused on operations, realized no CRM-like platform existed for buying software while building purchasing functions.[1] Frustrated by these inequities, they combined David's sales acumen and Justin's operational skills to create a platform leveling the playing field for buyers.[1] Early milestones included $2.1M seed funding, $25M Series A, $40M Series B, and a 2023 shift to a full SaaS model, leading to exponential growth.[1]
Tropic rides the wave of exploding SaaS complexity, where businesses face volatile markets, shadow IT risks, and fragmented procurement amid rising software costs.[2][4] Its timing aligns with AI adoption in finance ops, automating grunt work and providing data-backed insights when manual processes fail large vendors' advantages.[1][2] Market forces like economic pressures for cost control and regulatory demands for visibility favor Tropic, enabling smarter decisions that cut waste and mitigate risks.[2][3] It influences the ecosystem by empowering buyers—shifting power from suppliers, fostering efficient spend cultures at scale, and setting standards for intelligent procurement orchestration.[1][3][4]
Tropic is poised to expand as AI evolves spend management, potentially capturing more of the $15B+ insights market by deepening integrations and global reach.[2][4] Trends like rising shadow spend, multi-cloud complexity, and procurement digitization will fuel growth, with its $10B managed spend base positioning it for enterprise wins.[2][3] Influence may grow through partnerships and further savings proofs, solidifying its role in making technology a true buyer's market amid ongoing SaaS proliferation.[1][2] This evolution from founders' frustrations to AI leader underscores Tropic's trajectory in transforming procurement from cost center to growth driver.[1]
Tropic has raised $67.0M in total across 3 funding rounds.
Tropic's investors include Insight Partners, Notion Capital, Union Square Ventures, Rayfe Gaspar-Asaoka, Hootan Rashidifard, Canaan Partners, Curie.Bio, Endeavor Catalyst, Founder Collective, Kapor Capital, Operator Partners, Shine Capital.
