NationGraph, a company focused on improving government procurement processes, has secured $18 million in a Series A funding round led by Menlo Ventures. The funding, which also received contributions from Perplexity’s Fund, XYZ Venture Capital, and Reach Capital, brings the company’s total funding since its inception in 2024 to $22.5 million. The firm aims to leverage artificial intelligence to facilitate connections between suppliers and public agencies, offering a service that many in the government technology sector see as ripe for disruption.
NationGraph’s platform, described as “AI-native intelligence,” collects and analyzes data from an extensive range of governmental bodies, including over 110,000 agencies at various levels—state, regional, and local. This data includes budget plans, meeting minutes, strategic documents, and Requests for Proposals (RFPs), all of which are often scattered across different sources. By collating this information into a centralized system, the company intends to help suppliers craft more informed proposals and pitches.
As the demand for improved transparency in government procurement processes grows, NationGraph is positioning itself alongside other tech firms like Starbridge, which raised $42 million last year to provide similar services. However, the public procurement landscape remains largely uncharted, according to NationGraph’s CEO and co-founder Kimia Hamidi. “This is a dramatically underserved space. It’s a fragmented and large landscape,” he stated in an interview. Hamidi’s career spans various roles in procurement and e-commerce, where he has focused on enhancing the accessibility of pricing data.
NationGraph was inspired by the e-commerce platform Shopify, which enables smaller businesses to reach broader markets through digital channels. Hamidi envisions a similar transformation for public-sector procurement, emphasizing that the ability to gather and analyze procurement data is crucial for leveling the playing field among suppliers. “We started NationGraph because we saw firsthand how information asymmetry determines who wins government contracts,” he said.
The freshly acquired capital will be allocated towards hiring engineers and marketing professionals to expand NationGraph’s reach. “We’re proud to lead NationGraph’s Series A as they bring transparency to the broken process of government procurement,” noted Croom Beatty, a partner at Menlo Ventures. He highlighted the significant challenges posed by a procurement process often described as “messy and opaque,” where crucial data is trapped in various portals and unstructured documents.
As AI continues to reshape various industries, its application in government procurement may lead to a more efficient and equitable system for suppliers seeking contracts. The evolution of platforms like NationGraph could facilitate greater access to crucial information, thereby transforming how government contracts are awarded. As technology firms venture further into this relatively unexplored territory, the potential for AI to streamline procurement processes seems promising.
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