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Arkestro Lands $26 Million in Series A Funding

Arkestro is the leading Predictive Procurement Orchestration platform, and now it’s about to undertake the next stage in its growth story. The company is pleased to announce that it has successfully landed Series A funding of $26 million.  

This round of funding was led by NEA, Construct, Koch Disruptive Technologies (KDT) and Four More Capital, a division of Henry Crown & Company. This fresh funding will be used to accelerate growth, enabling Arkestro to further help customers amplify the impact of procurement’s influence across their enterprises using behavioral science, game theory and predictive machine learning models applied at a massive scale.

Jeffrey Immelt, Venture Partner at NEA says, “Arkestro’s embedded platform unlocks clear business value by empowering enterprises to scale their most efficient purchasing decisions, resulting in accelerated savings and improved supplier experience. Arkestro is composed of a strong and diversified team of technical and GTM leaders with a differentiated, AI-powered solution that meets growing market needs for one-stop procurement and supply chain optimization.” If that name sounds familiar, it’s because, for 16 years, Immelt was the CEO of General Electric—one of the largest and most historic companies in U.S. history.

Immelt understands the importance of purchasing to a company’s success, especially with the ever-increasing complexities of today’s business environment. He saw something in Arkestro, which uses artificial intelligence (AI) and machine learning to deliver the many advantages of predictive procurement to companies worldwide. Immelt also wrote the foreword of our CEO’s recent book, Predict and Win.

“For decades, NEA has invested in companies addressing a broad spectrum of enterprise challenges,” added Scott Sandell, Managing General Partner, NEA. “We’ve worked with industry-transforming companies such as Salesforce, Workday, and Cloudflare. Now, we are thrilled to partner with Arkestro, and believe the company has immense potential to impact procurement for businesses at global scale.” 

In addition to NEA, other investors in Arkestro’s Series A funding include Construct, Koch Disruptive Technologies, and Crown Industries. 

Byron Knight, COO and Managing Director at Koch Disruptive Technologies,  commented on why he chose to fund Arkestro: 

“We see significant potential for Arkestro and its technology platform in the supply chain; notably in terms of the value it will bring to the procurement market to help enterprises realize increased efficiencies and savings in their operations,” said Byron Knight, COO and Managing Director at Koch Disruptive Technologies. “KDT and Koch Industries have numerous investments and operations across the supply chain, and we’re excited to help Arkestro explore the potential applicability of its solutions.”

Dayna Grayson of Construct Capital added, “Arkestro’s product provides strong savings to corporate procurement departments, and we became extremely excited to be a part of this journey. It’s rare to find a company that solves age old problems at the most important time, in this case, when the supply chain has unpredictable timelines and sometimes runaway prices.”

Our team at Arkestro is also excited about the possibilities Series A funding brings. Our CEO Edmund Zagorin explains why this Series A funding is so critical to Asrkestro’s future growth and why having NEA and Construct as the lead investors are so important:

“With NEA and Construct, Rob and I know our success is backed by the dream team — experienced investors and tireless advocates for capabilities that can help offer dramatic benefits to any enterprise with a spend portfolio that ranges across complex, constrained and fast-moving buying channels — including spend that has eluded influence from traditional user-driven platforms. Our leadership team sees this investment is additional validation for Predictive Procurement Orchestration as a market category and are excited to see so many customers realizing the rapid time-to-value of this imbedded platform that has both AI/ML and a human science approach.” 

Our CTO, Ben Leiken added his thoughts:

“We’re excited to leverage this investment to bring Predictive Procurement Orchestration to many more customers and verticals. As we accelerate our product roadmap and hiring plan in the coming weeks, we’re focused on one thing: realizing our vision even faster.” 

 

Arkestro Series A – The Future of Procurement is Predictive

Predictive Procurement Orchestration is the future of procurement. Every industry has been dealing with unprecedented supply chain challenges that show no sign of easing. Their procurement teams need to maximize their effectiveness, but they also need to do so in a way with minimal disruption. Arkestro allows companies to leverage the procurement data they already have in their existing systems, using the platform’s AI and its ability to drive automated and augmented processes. The results are deep insights into purchasing information and better decisions—without having to adopt new procurement software for day-to-day use.

Industry statistics support Arkestro’s market opportunity:

  •   5-10% boost to savings on any enterprise’s addressable spend
  •   External validation and improved data quality for every single Purchase Order
  •   Unify data for real-time visibility across suppliers, spend and contract terms, including Diversity, ESG, and Supplier Risk

 

One of the key reasons why the investors chose to fund Arkestro’s Series A is the company’s success to date with leading brands including Bel Brands, Box, and Holman Enterprises. Arkestro, which is targeted at the C-suite and trusted by CFOs and COOs, is helping to boost both savings and supply chain performance – including quality, lead time and on time in full (OTIF) metrics. It offers machine learning-powered predictive pricing, which enables buying teams to better negotiate with and manage more suppliers. In this way, Arkestro helps its customers better manage their supply chains and increase supply chain performance and resiliency to market shocks and inflationary cost pressures. The Arkestro story isn’t just one of potential; it’s one of proof of demand for its product. 

For additional information about Arkestro, procurement trends and issues, customer case studies, and the advantages of adopting the strategy of procurement orchestration, be sure to read the Arkestro blog.

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Rob DeSantis

Founder

As a former co-founder of Ariba running sales, Rob has deep expertise in the procurement space, having helped propel Ariba from zero to $250 million in revenue in four years and IPO of the year in 1999 before its acquisition by SAP a decade later. In addition to co-founding Ariba, Rob was also an early angel investor and board member of LinkedIn, the world’s largest professional online network.

More recently, Rob served as an investor and advisor to a small portfolio of companies including Bloom Energy, AEye, Inc., HiQ Labs, Agiloft, USEND and more. He is also a co-founder of Dibbs Technology and TrueParity. Rob holds a BSME from the University of Rhode Island.

Marty Meyer

Chief Financial Officer

A trusted partner and advisor on the executive team, Marty has a unique background having been the CFO of nine venture backed technology companies. Marty has raised over $300M in venture funding and has closed six strategic M&A transactions with a combined value of over $1B. Marty has deep domain expertise in ecommerce, consumer internet, networking, data security, data privacy, media technology and enterprise software industries. Marty is especially experienced in the finance and operations activities of SaaS companies and is driven by data and metrics to help create outstanding customer experiences and drive efficient growth.

Neil Lustig

President and Chief Operating Officer

Neil is a seasoned executive with over 30 years of experience leading and building teams in Tech. Neil brings insights from a variety of market spaces and company sizes. Most recently Neil was the CEO of GAN Integrity, an innovative SaaS Compliance technology company serving enterprise customers in North America and Europe. Before that Neil was the CEO of Sailthru, a leader in ML driven personalized multi-channel marketing communications for media and e-commerce markets. Prior to that Neil was the CEO of Vendavo, the leader in B2B price optimization and management for large enterprises. Before Vendavo, Neil led the commercial team at Ariba, the market pioneer that defined and created the eProcurement space. Neil served as the GM of Ariba Europe and subsequently the GM of Ariba North America. Neil started his career at IBM where he spent sixteen years, initially as a software developer, and then twelve years in a variety of Sales and Marketing roles

 

Neil has a BS in Computer Science and Applied Mathematics from SUNY Albany. He is a native New Yorker, Brooklyn born, and still resides with his wife and three children in New York City.

Bonnie Adams

Director of People Operations

Bonnie is a People Operations and HR veteran, with over a decade of experience establishing successful people and culture functions for early to mid-stage tech startups going through high growth phases. She has a passion for supporting and creating inclusive and collaborative work environments and is well-versed in driving positive changes in her organizations as a trusted leader. Prior to joining Arkestro Bonnie worked as the People & Culture Coordinator for Ionic Security, helping them scale from 5 to over 200 employees in addition to a $120M funding round. Most recently she was the Head of People & Culture for blockchain innovator Storj Labs and was the Director of Human Resources at PrizePicks, the largest independently owned Daily Fantasy Sports platform in North America.

Arym Diamond

Chief Revenue Officer

Arym Diamond joined Arkestro in January 2022 bringing over 20 years of experience in the enterprise software and consultancy industry.  He is responsible for the worldwide go-to-market revenue strategy. Prior to Arkestro, Arym was Chief Revenue Officer at CalAmp focused on Telematics and Logistics. He also served as the area vice president of North American Sales within the Salesforce.com Enterprise Business unit for Einstein Analytics & AI, where analytics and machine learning were re-imagined for the front office.  Prior to that, he spent over 10 years at Oracle in various sales positions. Arym holds an MBA from the University of Southern California Marshall School of Business, and an undergraduate degree from California State University.

2022 Gartner® Hype Cycle™
for Procurement and Sourcing
includes Arkestro.

2022 Gartner® Hype Cycle™ for Procurement and Sourcing includes Arkestro.

Gartner® Hype Cycle™ are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.

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