Cato Raises €6m to Sell AI into Italy’s €309.7bn Tender Market
Milan startup Cato has raised €6 million in seed funding led by Keen Venture Partners to integrate artificial intelligence (AI) into Italian public tender processes, targeting a market valued at €309.7 billion.
Cato aims to address the complexity of Italy’s bidding system, which is considered one of the last major unautomated workflows in Europe. Its backers argue that while most software simplifies tasks, Cato focuses on preserving the inherent difficulty of the public procurement process.
Key Points:
- Investment Rationale: Keen Venture Partner’s Briehan Burke highlights the vast untapped potential within the European public procurement market, with Italy presenting a unique opportunity due to its complex bidding system.
- Market Size: According to Italy’s anti-corruption authority (ANAC), Italian public contracts totalled €309.7 billion in 2025, showcasing a significant opportunity for AI-driven solutions.
- Simplification Efforts: While Italy is digitizing its procurement processes through ANAC initiatives, Cato argues that the sheer volume of information and complexity remains a major challenge for suppliers.
- Product Focus: ANAC’s sector breakdown shows a notable growth in supply contracts (25.2% by value) and services (15.9%), indicating areas where Cato’s AI-driven solutions could be particularly well-suited.
Investors: In addition to Keen Venture Partners, existing investors Italian Founders Fund, Vento, Heartfelt, Moonstone, BHeroes, Alecla7, and Nova Venture participated in this round, alongside new angel investors from Lexroom, Sibill, and Pillar.