AI procurement startups may be attacking the $10 million team while ignoring the $1 billion spend.
Peter Cetale, co-founder and CEO of Sourcerer, grew monthly order volume from $300,000 to $1.5 million and surpassed $2 million ARR.
They discuss:
• Why Sourcerer targets the cost of physical goods instead of merely reducing procurement headcount.
• How AI agents find factories, negotiate prices, arrange third-party audits, and compare freight without onboarding suppliers.
• Why aggregating demand gives Sourcerer better pricing leverage and makes bypassing the platform economically unattractive.
• How one factory went from receiving zero Sourcerer volume to getting more than half its business through the platform.
• Why Peter expects workflow automation margins to collapse as frontier model providers absorb basic agent functionality.
“Do the customer discovery, talk to people, see if it’s a problem.”
Would you rather back a high-margin workflow tool or a transaction business that directly lowers customers’ cost of goods?
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