Evaluating only SourceDay’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Competition.
Key Events Timeline
FOUNDING
SourceDay founded in Austin to modernize purchase order collaboration between buyers and suppliers.
FUNDING
Raised $15M Series A to expand into manufacturing and distribution verticals.
CEO CHANGE
Co-founder Tom Kieley stepped down as ARR targets missed and Series B closed.
SHUTDOWN
Ceased independent operations in early 2024 in acqui-hire by larger supply chain platform.
Full Analysis
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Documented cause
SourceDay raised $26M to build a supplier collaboration and purchase order management platform that acted as a B2B procurement marketplace layer for manufacturers. The Austin-based company secured significant enterprise clients but faced intense competition from SAP Ariba, Coupa, and Oracle SCM. Despite a 2022 Series B attempt, the company could not reach the ARR thresholds required by investors. Co-founder Tom Kieley stepped down in late 2023 and the company ceased independent operations in early 2024.
Lesson
“Competing on workflow efficiency against entrenched ERP ecosystems requires 10x cost advantage.”