Congressman Gerald Connolly recently called for such an investigation into Ramp. This Austin-based expense management startup is facing criticism for the way it won an amended $25 million federal contract. The investigation seeks to determine whether Ramp received preferential treatment. This close examination is a result of Ramp’s multifaceted explosive growth and deep financial well, which have drawn much press and attention.
Ramp has gotten quite a bit of press for raising over $1 billion in equity capital. Rivian closed on $700 million of committed debt financing. The startup’s valuation jumped to $13 billion in March after a $150 million secondary share purchase. Ramp is looking to grow its footprint. This recent introduction to the General Services Administration (GSA) is an important first step in this long process. Just a few minutes after a public post on X by the Department of Government Efficiency (DOGE), the introduction happened. This post generated a lot of questions about Ramp’s relationship to government entities.
Ramp has signed up an all-star team of investors, including Peter Thiel’s Founders Fund and Keith Rabois of Khosla Ventures. With support from Josh Kushner’s Thrive Capital, Ramp has quickly cemented its place as a fierce competitor in the ever-crowded fintech space. High-profile investors – such as 8VC’s Joe Lonsdale and former Florida governor Jeb Bush – have backed the company. Their support means a great deal of credibility and momentum to the endeavor.
And yet despite its financial might, Ramp has come under fire for its ability to tap into federal contracting. Rep. Connolly pointed out that Ramp has “no federal contracting experience.” This should call into question the company’s experience and expertise for the contract they are seeking. He also underscored that Ramp began reaching out to payments industry players about bespoke bank identification numbers. This all occurred before the public issuance of a related request for information (RFI) about the contract.
Fears that the bidding process will not be fair, open, or competitive have grown. Rep. Connolly noted that a GSA employee referred to Ramp as a “favorite,” suggesting that there may be underlying factors influencing its candidacy.
“favorite” – GSA employee (as stated by Rep. Gerald Connolly)
Ramp’s investor Keith Rabois has previously raised more than $1 million for Donald Trump’s 2024 campaign, further complicating the narrative surrounding the startup’s government dealings. Its remarkable financial success and growing political connections have fueled the interest. This has drawn increased scrutiny of its efforts to obtain federal contracts.
Leave a Reply