AI-focused procurement platform Levelpath nets $55m series B

Levelpath, a procurement software startup, has raised US$55 million in a series B funding round led by Battery Ventures.

Existing investors, including Benchmark and Redpoint, also participated in the round.

Founded by Stan Garber and Alex Yakubovich, Levelpath previously raised US$14.5 million in a seed round and US$30 million in a series A round in 2023.

Levelpath’s platform aims to address procurement challenges by providing a user-friendly, mobile-first experience.

The company has integrated AI to analyze contract data and suggest cost-saving alternatives.

Its clients include Ace Hardware, Amgen, Coupang, and SiriusXM.

This funding will support Levelpath in scaling its operations and expanding its presence in the competitive procurement software industry.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Serial entrepreneurship is revolutionizing procurement software

Levelpath’s founders represent a growing pattern of repeat entrepreneurs who build and sell successful procurement solutions, then return to solve deeper industry problems.

Alex Yakubovich and Stan Garber’s entrepreneurial journey spans multiple ventures, starting with ONOSYS (an online ordering platform) before founding Scout RFP, which they sold to Workday for $540 million in 2019 1.

Their return to entrepreneurship with Levelpath mirrors other procurement software success stories, including Coupa’s founders, who similarly identified critical gaps in existing solutions before building a company that eventually reached an $8 billion valuation 2.

This pattern of experienced founders returning to the procurement space suggests that despite multiple generations of software solutions, significant inefficiencies remain unresolved, creating opportunities for founders with deep domain expertise.

The founders’ immigrant background and 20+ years of collaboration have likely contributed to their success, as they’ve consistently focused on creating more user-friendly alternatives to traditional procurement systems 3.