Lio raises $30M from Andreessen Horowitz and others to automate enterprise procurement

Lio’s co-founders know firsthand that procurement — the process enterprises use to purchase services from vendors — is often a bottleneck. Vladimir Keil, the company’s co-founder and CEO, had experienced this problem as an employee inside a large company and then again while building his first startup. “When we were selling enterprise software, we had to go through procurement ourselves and saw how manual and fragmented the process still is,” he told TechCrunch. Kiel and his team have built an automated platform of AI agents — software that can complete tasks on behalf of humans — to help fix some of those fragmented processes. On Thursday, Lio announced a $30 million Series A in a round led by Andreessen Horowitz. SV Angels, Harry Stebbings, and YC also partook in the round (Lio was part of the Spring’23 batch). The company has raised $33 million in funding to date. Keil said the fresh capital will be used to expand the company throughout the U.S. and increase the capabilities of Lio’s AI agents, which aim to complete the entire procurement process for enterprise customers. Procurement is at the heart of enterprise spending, where companies look to buy everything from raw materials to professional services. Each purchase order requires focus and commitment: One usually has to open some type of Enterprise Resource Planning, or ERP, software, check contract management systems, search the supplier database, run compliance checks, cross-reference budgets, dig through emails, and so on. “Even with modern eProcurement software, most of the real work is still done manually,” Keil told TechCrunch. Companies are left to build large internal teams or outsource this work, resulting in a slow, expensive process. Keil had an idea — if the procurement process is largely unstructured data and repetitive workflows, then surely this is the type of task an AI agent is well-equipped to handle. He teamed up with friends Lukas Heinzman and Till Wagner and in 2023, the trio launched Lio...