Cato was founded in Milan by Andrea Zorzetto and Matteo Bossolini in June 2025. The initial version of the software was developed within one week. The company was incorporated in September, secured its first paying client in October, and closed a pre-seed round of €1.6 million in December, led by the Italian Founders Fund.
The startup uses AI to track public tender notices in real time, extract requirements and evaluation criteria, and pre-fill administrative and technical sections of bids. The system links each claim back to its source, and the final submission remains with the client. The tool is designed to help small businesses navigate complex paperwork and increase their chances of winning government contracts.
The Italian tender market is significant, with the value of tenders reaching €309.7 billion in 2025, representing a 13.9% increase from the previous year. Across the EU, more than 250,000 public bodies spend approximately €2.5 trillion annually, which accounts for 14% of the GDP.
Cato faces competition from other AI bid-management platforms, such as the UK-based Stotles, which raised $13 million in a Series A round and serves over 1,000 sales teams, and the Netherlands-based Altura, which closed an €8 million Series A round.
The current investment comes during a period of growth for Italian tech. In the first half of 2026, startups in Italy raised €813 million across 145 rounds, with AI remaining the leading category.
