Pactum, an Estonian-founded AI platform that automates contract negotiations, has closed a $3 million seed round led by Berlin-based Project A. DocuSign and other previous investors also participated.
The California-based startup says many enterprise companies lose out on “hidden value” in vendor contracts, because there are just too many contracts of too little value to warrant a procurement specialist’s time. Pactum’s AI chatbot autonomously negotiates these supplier contracts with real humans on the other end — using best practices from ‘negotiation scientists’ — then updates the new contract details in ERP, CRM and other systems.
Project A’s general partner Uwe Horstmann commented, “We are convinced that AI-based systems will shape the future of commercial negotiations. Pactum is well on its way to play an essential role in this future.” In a press release, the startup claims it has increased the value of long tail deals by 11-27 percent for recent customers. Those customers are predominantly Fortune 500 companies, though Walmart is the only one named publicly.
Founded in 2019 by Kaspar Korjus, Kristjan Korjus and Martin Rand, Pactum is headquartered in Mountain View but has engineering and operations teams in Estonia. Rand, the company’s CEO, commented, ““We’re happy to announce this round of funding which will bring our technology to more enterprises that need it.”
Photo: co-founders Kristjan Korjus, Martin Rand and Kaspar Korjus