Civic Marketplace Raises $3.2M to Transform Government Procurement, Announces Partnerships with Major Industry Leading Organizations

ABILENE, TX - Civic Marketplace, a procurement technology platform revolutionizing how local governments purchase goods and services, today announced a $3 million seed round led by Kindred Capital. The oversubscribed round includes participation from prominent angel investors like Andy Phillipps (former CEO of Priceline International and Chairman of TopTable), David Velez (founder of Nubank), Tim Sadler and Ed Bishop (co-founders of Tessian), Basis Capital, Sophie Adelman (co-founder Multiverse), alongside notable investors including Avalanche VC and Endurance Companies.

The funding announcement comes as the company solidifies its position in the Texas market through a landmark collaboration with the North Central Texas Council of Governments (NCTCOG), which serves a 16-county region with over 8.2 million residents. Through this collaboration, more than 200 local governments in North Texas gain streamlined access to Civic Marketplace's AI-powered procurement platform, representing a significant step toward modernizing the $2 trillion government procurement market.

Civic Marketplace also recently announced a partnership with NIGP Code & Consulting. NIGP Consulting is the gold standard in public sector procurement, offering unparalleled expertise and leadership to government entities across North America. The partnership will enhance platform support for member agencies through procurement excellence guidance, build capacity through strategic sourcing best practices, and integrate NIGP's standardized commodity coding system to enable more precise category navigation.

"While Amazon can ship anything to your door in two days, local governments are still pushing paper and waiting months to buy basic supplies," said Ron Holifield, Co-Founder & President of Civic Marketplace. "It's like watching a VHS tape in the age of Netflix.”

“We're bringing government procurement into the modern era," added Al Hleileh, CEO of Civic Marketplace. "Our collaboration with NCTCOG shows that local governments are ready to embrace change – they just need the right tools. When you can help a city buy supplies in days instead of months while maintaining full compliance, that's not just efficiency, that's transformation." “There has been a breakdown in trust in government delivery. We know local government is on the frontline of delivering services that matter. Delivering services in a way that rebuilds the fabric of trust with businesses and residents is what excites me about the mission of Civic Marketplace,” commented Kip Harkness, co-founder and Deputy City Manager at the City of San Jose.

The NCTCOG collaboration marks a significant milestone in the company's mission to transform public sector procurement. By leveraging Civic Marketplace's platform, member governments can reduce procurement timelines from months to days while ensuring full compliance with state and local regulations. The platform also promotes supplier diversity by making it easier for historically underutilized businesses to compete for government contracts.

"NCTCOG is committed to bringing innovative solutions to our member governments," said Monte Mercer, Deputy Executive Director of NCTCOG. "Civic Marketplace’s platform has been designed from the ground up to shape the future of government procurement – to create a system that is increasingly efficient, transparent, and accessible to organizations of all sizes. This collaboration will help our members better serve their communities while making the most of taxpayer dollars."

The company's platform, which was co-designed with local governments over the past two years, has seen rapid adoption across Texas. Beyond efficiency gains, the platform's emphasis on supplier diversity and local economic development has resonated strongly with public sector leaders.

“We chose Kindred to lead our round because both Ron and I were deeply inspired by Texas-born Leila Zegna and her team’s vision,” said Hleileh. “Leila has built one of the world’s leading seed capital funds by focusing on mission-driven organizations. Her team’s approach to combining purpose with innovation made them the ideal partner for Civic Marketplace’s journey.”

"What drew us to Civic Marketplace was their unique approach to modernizing government operations through technology while promoting economic inclusion," said Leila Zegna, Managing Partner at Kindred Capital. "Their traction with NCTCOG and other major government entities demonstrates the urgent need for procurement innovation in the public sector, and resonated with our belief & values in marrying profit & purpose at Kindred," one of the world’s leading seed venture capital firms. 

The funding will be used to expand the company's engineering and customer success teams, accelerate product development. Civic Marketplace plans to roll out new AI-powered features later this year to further streamline the procurement process and help governments make more informed purchasing decisions.

Other investors in the round include Basis Capital, Henry Irish (co-founder of Platformed), and Melissa & Vic Valentine.

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About Civic Marketplace

Civic Marketplace is a venture-backed technology company transforming public sector procurement through cutting-edge innovation. Our platform streamlines and accelerates procurement processes, offering local governments a user-friendly, fully compliant solution. Designed for simplicity, Civic Marketplace makes procurement straightforward. We are committed to transparency, efficiency, and supporting diverse suppliers, including Historically Underutilized Businesses, to foster local economic growth and drive innovation. By providing access to a network of reliable, pre-approved vendors, the platform ensures legal compliance and quality assurance for every contract. Discover how we are reshaping procurement at www.civicmarketplace.com.

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Join the Civic Marketplace Community!

• Agencies: Ready to streamline your procurement processes and access the best tools and resources? Sign up here to join Civic Marketplace and transform your procurement experience.
• Suppliers: Want to connect with local governments and expand your business opportunities? Sign up here to become part of the Civic Marketplace supplier network.

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Contact Information:‍

Jordan Schupbach
Director of Communications & Product Marketing
Civic Marketplace
jordan@civicmarketplace.com