Pursuit, a firm aiming to simplify government contracting, has closed a $22 million Series A funding round. Led by Mike Rosengarten of Builders VC, the investment will fuel the company's mission to modernize public sector sales. The platform uses artificial intelligence to help businesses win contracts with state, local, and education agencies.
A Mission to Modernize Government Procurement
The market for state, local, and education government procurement exceeds $1.5 trillion in annual spending. Despite its scale, the process for securing these contracts has remained outdated, creating significant barriers for vendors. Pursuit was founded to address this problem by making the system less opaque and more accessible for businesses.
Co-founder and CEO Mike Vichich was inspired by his family's background in public service to improve government efficiency. He and co-founder Brandon Max saw the difficulty of selling to the government as a critical challenge to solve. Their goal is to help public agencies function more effectively by connecting them with innovative technology.
Harnessing AI to Uncover Opportunities
Pursuit's platform operates by continuously analyzing public data from around 110,000 government and education entities nationwide. Its AI systems crawl through budgets, contract registries, public records, and meeting minutes. This process uncovers valuable signals that would otherwise remain buried across thousands of disparate sources and formats.
The system transforms this fragmented information into fully researched and actionable opportunities for its customers. It identifies agencies most likely to purchase a client's services within the next year based on their needs and budgets. Vichich describes the product as an "AI clone" of a sales team, keeping clients aware of every development.
Investor Confidence and Market Landscape
The new $22 million Series A investment brings Pursuit's total capital raised to $25.5 million, showing significant investor confidence. The round was led by Mike Rosengarten, a general partner at Builders VC and co-founder of govtech company OpenGov. This funding will enable Pursuit to scale its operations and enhance its platform's capabilities.
The company has attracted prominent investors, including Jack Altman of Alt Capital, Bill Gurley, and Sam Hinkie. Pursuit enters a competitive market with rivals including Starbridge, GovSpend, and Deltek GovWin IQ. This strong backing positions the company to compete effectively and capture market share in the govtech space.
The Broader Impact on Public Sector Sales
By making public data useful, Pursuit aims to democratize access to government contracts. The platform's transparency can level the playing field, giving smaller vendors a better opportunity to compete against established incumbents. This increased competition can lead to better services and more competitive pricing for public agencies.
Pursuit is already demonstrating its value with an impressive list of early customers. Major technology firms like Adobe, Samsara, and Datadog are using the platform to navigate public sector sales. This adoption by industry leaders validates the company's approach and highlights the demand for a more efficient solution.
With its new funding and a clear vision, Pursuit is positioned to expand its impact on the public procurement landscape. The company's use of AI aims to create a more efficient and transparent marketplace for government contracts. Ultimately, this effort seeks to ensure that public agencies and the citizens they serve benefit from better technology.