Levelpath, the brainchild of Stan Garber and Alex Yakubovich, emerges as a compelling new force in the procurement software realm. Both founders carry the weight of experience from their previous venture, Scout RFP, acquired by Workday for a hefty $540 million in 2019. This prior success does more than add credentials—it underscores their deep familiarity with enterprise procurement pains and potential. After three years within Workday, observing industry inefficiencies firsthand, they channeled these insights into building Levelpath, focusing on a modern, AI-enhanced procurement solution designed for ease and effectiveness.
The company’s approach is a sharp divergence from the lumbering legacy systems that have long dominated the market. By design, Levelpath embraces a mobile-first, user-friendly interface integrated with AI tools that analyze unstructured contract data and suggest cost-saving alternatives. This seamless fusion of intuitive design and cutting-edge technology gives Levelpath a genuine competitive edge, particularly as buyers increasingly demand agility and smart automation in procurement workflows.
Strategic Funding Fueling Aggressive Growth
Securing $55 million in Series B funding led by Battery Ventures marks a decisive vote of confidence in Levelpath’s vision and execution. This upsized round not only includes repeat backing from investors like Benchmark and Redpoint but also signals confidence in Levelpath’s capacity for rapid scaling. The startup is ambitiously aiming to quadruple revenue this year, a goal that reflects both the robust market demand and the company’s readiness to capitalize on it.
Battery Ventures’ general partner, Neeraj Agrawal, carries an impressive background, having led investments in procurement giants like Coupa. His involvement, now deepened by joining Levelpath’s board, is both a mentorship boon and a strategic indicator. Agrawal is evidently persuaded not just by Levelpath’s technology, but by Garber and Yakubovich’s integrity and track record of delivering value, qualities often lacking in hyped startups.
Addressing Procurement’s “Rogue” Spending Dilemma
Procurement has traditionally been plagued by a lack of user-friendly tools, resulting in widespread “rogue” spending, where employees bypass official systems out of frustration or convenience. This behavior is costly: it leads to missed bulk discounts, inflated costs, and poor spend visibility. Levelpath enters this gap as a welcome disruptor, aiming to restore control without sacrificing user experience. By simplifying procurement tasks and recommending more economical options through AI, Levelpath directly combats this costly organizational leak.
With procurement expenses ranking as the second-largest cost after payroll for many firms, any solution offering tangible savings is bound to attract considerable interest. This market significance is validated by its $7.3 billion valuation in 2023, highlighting how procurement software remains a fertile ground for innovation and consolidation.
The Competitive Landscape and Levelpath’s Differentiation
While Levelpath remains a newer and smaller player compared to incumbents like Coupa, Ariba, and high-growth companies such as Zip and Oro Labs, its early adoption of AI and focus on user experience present a formidable differentiation. Where legacy platforms often feel rigid and outdated, Levelpath’s nimble and AI-driven approach stands to woo customers seeking simplicity and actionable insights.
Its client roster, including recognizable names like Ace Hardware, Amgen, Coupang, and SiriusXM, signals early market validation. These customers may serve as proof points of Levelpath’s ability to navigate diverse procurement needs and scale effectively.
The Human Element Driving Technology Success
Beyond technology and funding, the story of Levelpath is deeply human. The friendship between Garber and Yakubovich, rooted in a shared immigrant background and decades of collaboration, infuses their startup with an uncommon level of trust and vision alignment. This cohesion appears to translate into a customer-centric ethos, with the founders striving not only to optimize procurement spend but to fundamentally change how employees interact with procurement software—from “dread” to “delight.”
In technology, it is easy to get dazzled by AI capabilities and funding figures, but startups ultimately succeed through relationships—both with investors and customers. Levelpath, anchored by its founders’ reputation for reliability and execution, is positioned to cultivate these relationships genuinely. Their mission to eliminate the frustration of procurement software is not merely tactical; it’s a bold cultural statement in an industry ripe for disruption.
Levelpath’s trajectory challenges the status quo by combining innovative AI underpinnings with a distinctly human approach. Its potential to transform procurement is not just about savings and data—it’s about reshaping an entire corporate behavior pattern, driving not only efficiency but enthusiasm within organizations.