Suger.io, an API-first platform helping software companies transact on cloud marketplaces, announced the completion of its $15 million Series A funding round, which was led by Threshold Ventures and participated in by existing investors Craft Ventures, Intel Capital, and Y Combinator.
Cloud marketplaces offer phenomenal benefits to enterprises, such as larger deal sizes, faster sales cycles, and minimal risk of late payments.
They have become the fastest-growing channel for B2B software sales today, with total annual transactions projected to surpass $100 billion by 2028. However, companies struggle with maintaining integrations to multiple marketplaces and orchestrating workflows to transact at scale.
Launched in 2022, Suger’s AI-powered platform automates the entire quote-to-cash process, streamlining fulfillment for self-serve products and freeing go-to-market teams from engineering and operational burdens.
Suger has become a leading player for tech companies navigating cloud marketplaces. Last year, the company more than quadrupled its ARR and scaled to roughly 200 customers, powering industry leaders such as Snowflake, Intel, Fivetran, DBT Labs, Notion, and ContentSquare.
Through its platform, Suger has enabled customers to 3x their marketplace volumes and increase average contract values by over 140%, with 8-figure deals regularly transacting on its platform.
Suger is driving a future where every software transaction is a frictionless marketplace transaction, bringing an e-commerce experience to B2B sales and solidifying its role as the definitive leader in this rapidly evolving space. With this new round of funding, Suger will continue to make significant R&D investments to deliver a unified ecosystem of cloud-forward procurement.
KEY QUOTES:
“When we started working with enterprise companies and their complex systems, we discovered a surprising amount of manual copy/paste work, unmanaged automations, and hastily built in-house tools.”
- Jon Yoo, co-founder and CEO of Suger
“Suger’s innovative approach to cloud marketplace sales solves one of the most pressing challenges for B2B software companies today, including many in our own portfolio. Suger co-founders Jon and Chengjun have deep expertise in this emerging space and embody the tenacity, product obsession, and vision that we look for in exceptional founders. We’re incredibly excited to support them and the entire Suger team as they build the category defining company in cloud marketplaces.”
- Lisa Xu, Partner at Threshold Ventures
