Notably, the San Francisco company was founded in 2020, so it has achieved this unicorn valuation in about 18 months (this deal actually closed earlier in 2022).

Thus far this year, the industry has seen only $115 million of dealmaking - with Zip’s being the largest by far.įounded in 2020, Zip has raised $181 million to date, per the company.The process to make any purchase within a business can be long and cumbersome, involving multiple departments and lots of back and forth.Ī pair of Airbnb alums have teamed up to build a software business aimed at dramatically simplifying that process, or being, in their words, a “concierge for procurement.” That startup, Zip, has raised $43 million in a Series B round of funding led by YC Continuity at a $1.2 billion valuation. However, last year those numbers fell to just $335 million in 53 deals.

In 2021, startups in the sector raised $1.5 billion in 80 deals. SAP, Ariba and Coupa have built large companies in the sector.ĮRP startups have not seen big funding dollars in recent times, according to Crunchbase data. While not the sexiest of industries, companies do need software systems that help run processes in departments such as finance, human resources and supply chain. Procurement falls under the broader umbrella of what is often called enterprise resource planning. The company claims hundreds of customers globally including Snowflake, Coinbase and Northwestern Mutual. Its platform helps with sourcing, approving and paying for needed business tools, ideally helping to streamline the process to make it less taxing. Zip helps companies with the burdensome process of buying new software and hardware. “Zip is one of YC’s most successful B2B companies from the last few years.” “We continue to invest in Zip because we believe in this outstanding team’s ability to achieve their mission to solve a ubiquitous business problem: spend control,” Garry Tan, president and CEO at Y Combinator, said in a release.

Zip intake to procure crunchbase