In the crowded landscape of software solutions, Stackfix, a London-based AI-driven platform for software comparisons, has raised $3 million in seed funding. Chalfen Ventures (which invested in Cogna and Worldover) led the round with participation from Seedcamp (which invested in 9fin and Volter) and helloworld.
Also, notable angel investors such as Paul Forster (Founder of Indeed.com), Mehdi Ghissassi (Head of Product at DeepMind), Matt Clifford (Chair of Entrepreneur First), Alice Bentinck (Co-Founder of Entrepreneur First), and Charlie Delingpole (Founder of ComplyAdvantage) contributed to the investment.
With its recent funding, Stackfix plans to further advance its AI capabilities, and expand its comparison platform globally.
The challenge in business software
Every year, businesses globally spend over $1 trillion on software, yet most struggle to make informed purchasing decisions. The surge in software choices, paired with opaque pricing and feature complexity, often results in businesses selecting unsuitable products. The ripple effects are significant, leading to wasted resources, reduced productivity, and frequent software switches.
Current solutions like G2.com and Capterra rely heavily on user-generated reviews. These reviews are frequently outdated, biased, or influenced by sponsorships, failing to provide the insights needed for accurate decision-making. This inefficiency is further increased by AI-driven growth in the software market, which has increased both the number and complexity of available tools.
The idea behind Stackfix
Stackfix was co-founded in 2023 by Paddy Stobbs and Camin McCluskey. Stobbs, who had previously led Jukedeck, an AI music company acquired by TikTok, experienced firsthand the inefficiencies of purchasing software for his startup. Identifying the systemic flaws in existing platforms, Stobbs partnered with McCluskey to build a solution designed to transform software procurement.
The inspiration for Stackfix came from their frustration with the time-consuming and unreliable process of finding business software. Despite leveraging networks and conducting exhaustive comparisons, they often ended up with products that failed to meet their needs.
Deploys AI to test software products
Unlike traditional review sites, Stackfix uses AI to test and compare tools in real time, delivering up-to-date insights on pricing, features, and performance to simplify decision-making. This approach ensures that business buyers receive accurate, unbiased comparisons tailored to their specific requirements.
The platform also incorporates insights from experienced users and automatically updates its data as software evolves. This ensures that recommendations are both current and precise, helping businesses avoid costly purchasing errors.
Paddy Stobbs, Co-Founder and CEO of Stackfix, said: “The software market is at a tipping point. AI has enabled an explosion of new products, but the tools to help businesses choose the right software haven’t kept up. Stackfix is changing that with an AI-powered, real-time solution that makes software buying faster, simpler, and more accurate. We’re thrilled to have the backing of such incredible investors as we work to build the ultimate software comparison platform.”
How does it benefit customers?
Stackfix has already demonstrated its potential during its private beta. Businesses across North America and Europe such as ElevenLabs and Synthesia have spent over $500,000 on software through the platform, seamlessly integrating it into their procurement workflows. These early adopters appreciate the clarity and speed the company brings to decision-making, turning what was once a months-long process into a matter of seconds.
What’s ahead for Stackfix?
The startup is poised to transform how businesses approach software procurement, streamlining processes and ensuring better outcomes in a rapidly growing market. With its innovative approach and strong backing, it is well-positioned to lead this evolving space. The company envisions becoming the go-to platform for businesses worldwide, providing reliable software recommendations and eliminating the frustrations of traditional buying methods.
Investors’ views
Mike Chalfen, General Partner at Chalfen Ventures, said: “The Stackfix team is addressing a huge opportunity. Software is exploding. Every business wants to buy more tools, but does not have the time or information to choose the best products for them. Stackfix solves this—using AI to guide teams to the best options with speed and precision. The Stackfix team is addressing a massive opportunity, and Paddy and Camin are incredibly hard-working, principled and ambitious. I am proud to support them in building the go-to marketplace for B2B software.”
Reshma Sohoni, Co-Founder and Managing Partner at Seedcamp, said: “Choosing the right software is a universal pain point for businesses, yet today’s solutions fall woefully short – lacking transparency, efficiency and trust. Stackfix is changing the game with its AI-driven approach, empowering businesses to make smarter decisions, save time and maximise value. We are delighted to back Paddy and Camin as they build the state of the art software comparison platform and redefine how companies find and buy the tools they need to succeed.”
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