Levelpath Nabs $30 Million in Series A to Revolutionize Enterprise Procurement

Levelpath Nabs $30 Million in Series A to Revolutionize Enterprise Procurement

Levelpath, a startup founded by former Scout RFP executives Stan Garber and Alex Yakubovich, announced it has raised $30 million in a Series A funding round. The company’s cloud-based platform aims to manage a range of enterprise procurement services and tear down the inefficiencies plaguing today's businesses.

Transaction Highlights:

  • Deal Value: $30 million.
  • Acquirer: Investment spearheaded by Redpoint, with Menlo Ventures also participating.
  • Target: Levelpath, the procurement management platform that aims to redefine how companies handle procurement services.
Company Snapshot:
  • Growth: Company recently secured Series A funding following a stealth $14.5 million seed round, bringing the total capital raised to $44.5 million.
  • Market Share: Aiming for a piece of the procurement software market, valued at $6.15 billion in 2021.
  • Looking Ahead: Anticipates doubling its 26-employee workforce next year and intensifying its go-to-market strategy in 2024.

 

Procurement Pain Points: An Industry in Need

Levelpath founders aren’t the only ones vexed by the quagmire of procurement. According to a Harvard Business Review study, approximately 60% of business leaders feel that the disconnect between finance and procurement poses a risk. It's not just about the inability to track spends; data governance and quality are frequently cited as the biggest challenges.

Why Levelpath Stands Out

While there are multiple players like Zip and Ramp targeting the procurement software market, Levelpath aims to distinguish itself with its user-friendly, mobile-first platform. Designed for enterprises managing hundreds to thousands of vendors and employees, the platform allows customization to match each company’s unique approval workflows. In addition, AI-driven "actionable insights" are a unique feature, designed to identify areas for vendor consolidation and process enhancement.

A Bold Mission and Future Plans

Levelpath is ambitious, to say the least. Their goal is to make procurement not just manageable but "delightful." While that's a tall order, the company claims to have already onboarded several enterprise customers, including Ace Hardware and Qualtrics. With a 26-person team set to double in the next year, the focus is on expanding their market footprint and investing in R&D.

Looking to understand your company’s valuation before your own fundraise or exit? At Clear Value we help founders of tech companies use comparable reports with structured market data to make better decisions around valuation well ahead of any investment or liquidity event. Find out how we can help here.

Back to blog