FedBid

In 1998, Phil Fuster and Luigi Canali founded FedBid, driven by Fuster's frustration with the government procurement process. Their idea was to create an online marketplace where government agencies could post their needs for goods and services, and sellers would compete for the business in a reverse auction, driving down prices. The company launched with over $5 million in initial funding but struggled to gain traction. By December 2000, having failed to secure a second round of financing, FedBid ceased operations. The story didn't end there. In 2001, the online marketplace was reopened under new ownership, which formally adopted the name FedBid, Inc. in 2004. The revamped company focused on larger purchases of commercial items and simple services, finding significant success. Transaction volume grew rapidly, from $31 million in 2003 to over $1 billion by fiscal year 2010. In 2012, FedBid received a major investment from Revolution Growth, a fund led by Steve Case, Ted Leonsis, and Donn Davis. A significant chapter for the company came in October 2017, when it was acquired by Compusearch, a provider of software for government agencies. This move integrated FedBid's reverse auction marketplace into Compusearch's broader suite of procurement tools. Today, FedBid operates under the name Unison Marketplace, continuing its mission to streamline government purchasing.