The Story of Tropic: Building the Operating System for Software Purchasing
Sometimes the most compelling startup ideas come from witnessing systemic failure up close. In a recent episode of Category Visionaries, Tropic founder David Campbell shared how a devastating Microsoft contract renewal sparked a mission to transform how companies buy and manage software.
The Breaking Point
While at Microsoft, Campbell encountered a situation that would change his career trajectory. A global insurance company, reeling from CEO turnover and layoffs, faced a $100 million software renewal. The procurement team was drowning: “Look, our entire team is new, I’m sure you’ve seen the news. The whole company turned over… we’ve had a 10% riff. And I’m looking at this order form from Microsoft that has 300 SKUs in it. I have no idea what these are. I have no idea who bought this stuff.”
The outcome was devastating. “The company got locked into a contract for software that they could not afford, no budget, didn’t even need plenty of tools that had no value to them as a business for seats that they certainly didn’t have because they laid people off,” David recalls. “To pay for it they had to lay more people off.”
The Market Gap
This experience illuminated a fundamental disconnect in enterprise software. While sales teams had sophisticated tools and processes, buyers were left in the dark. Campbell saw a “pre-Cambrian explosion” in software that had created an imbalance: “One side of this ecosystem, which is the side that I grew up on, you have this laser focused sales motion with the most highly efficient process attached to it, with this vast ecosystem of tools… And on the other side of that ecosystem, the buyer has basically nothing.”
Building the Solution
Rather than creating another procurement tool, Campbell envisioned building “a sales force for buyers.” This meant challenging industry conventions, starting with the business model. While competitors chase marketplace commissions, Tropic created a zero-commission marketplace. “We’ve made this decision very intentionally because this is a market where there’s tremendous bias and where every platform that is supposed to be helping you is actually funded privately by the supply side, even including Gartner,” David explains.
This buyer-first approach extended to their branding. Rejecting the typical enterprise software aesthetic, they created a fresh, consumer-inspired brand. “I didn’t want a company that ends in Ly or ify,” Campbell notes. “I didn’t want a brand that sounds enterprise… Every CFO literally 100% of the CFOs that I’ve sold to at Tropic are millennials.”
The Vision Ahead
Looking forward, Campbell sees Tropic evolving into the central nervous system for enterprise software purchasing. “I believe that there’s a very big opportunity for this platform,” he shares. “Can we cover more and more categories as well as depth? Can we deepen further and further into this workflow and tackle more and more of this value chain?”
The ultimate goal is to create an integrated ecosystem that transforms how companies manage their software investments. “I see a very large all in one encompassing platform for folks that want to manage technology, manage spend and the like. And then I see an ecosystem of partners that can build on top of that and hook into that and kind of extend the window of value that we can create for the customer.”
For Campbell, this vision goes beyond just building a successful company. “I believe that as you think about ultimately exiting a company, which of course is the goal, I believe in protecting optionality, but building every step of the way is if you’re going to take it all the way, because that’s going to be the path to a good acquisition anyway. But we’re pursuing a very big vision.”
In a world where software costs are often second only to payroll, Tropic’s story suggests that the next frontier in enterprise software might not be another sales tool, but rather a platform that finally gives buyers the power they deserve.