GERMANTOWN, Md./PRNewswire/ -- FedBid.com, the first true end- to-end web-based information technology (IT) procurement solution, available online for federal government purchasers, announced that it has secured its first round of funding totaling more than $5 million. FedBid.com is free to government users, and helps streamline the purchase process by facilitating and aggregating open-market credit card purchases for business-to-government commerce.
The round was led by H.I.G. Ventures, followed by Sun Capital, Washington Capital Partners, Beagle, Ltd., Afton Capital, Horizon Capital and other strategic investors. Finalization of the round is pending completion of contracts with additional investors.
FedBid.com began a controlled launch in June of this year, with thousands of registered government users and hundreds of participating vendors already in place, and expects to be fully launched in the federal market later this summer.
"FedBid.com will use the funds raised in our Series A to strengthen our position in the federal open-market credit card arena," said Phillip J. Fuster, FedBid.com President and CEO. "As we grow, these funds will allow us to continue to build our strategic network of partners to make sure we provide value to both the government and vendor communities. We will also expand our 'best of breed' group of employees and continue to develop our proprietary technologies to better serve our customers."
In addition, FedBid.com will use Series A funds to explore opportunities to branch out into other vertical markets. "Our software was designed for the federal government, but it clearly has applications in state and local government, international markets, and in the commercial world," said Fuster. "We are currently looking at the services, medical and office supply markets and industrial MRO as potential areas of expansion for FedBid.com."
Today, FedBid.com offers credit card holders in the federal government a unique, online solution for the purchase of IT commodities such as printers, laptops, and accessories. With easy access to product research and information, the option to make independent purchases or to pool purchases with other government agencies, and an unparalleled ability to address the government's unique purchase reconciliation requirements, FedBid.com offers an online B2G solution that encompasses the entire purchasing process in a single Web site.