Tato, a startup focused on solving one of enterprise tech’s most persistent problems, has announced a $5 million Seed funding round led by Ridge Ventures. Other participants include Myriad Venture Partners, Betaworks, RRE Ventures, and several additional backers.
The funding will be used to expand the team and accelerate the development of its AI-native platform, which is specifically designed for system integrators managing complex ERP implementations.
For decades, ERP rollouts have been plagued by delays, budget overruns, and outright failures. Since the 1990s, companies such as Nike, Hershey, PG&E, and Hewlett-Packard have experienced high-profile ERP disasters. Even today, Fortune 500 firms spend up to 5% of their annual revenue on ERP systems, yet most projects still fail to meet expectations. By 2027, more than 70% of ERP initiatives are projected to miss their business goals, and up to a quarter may fail.
Tato aims to change that by combining agentic AI with real-time project intelligence. Its platform is built to handle the complexity of large-scale IT projects, which often involve dozens of workstreams, hundreds of stakeholders, and constant changes. Tato acts like an intelligent assistant embedded in the workflow. It listens in on meetings, reads chats, and integrates with project management tools to build a live knowledge base. This helps teams stay organized, identify risks early, and reduce the manual effort required to keep projects on track.
The platform is handy for system integrators, who are responsible for implementing ERP systems across various industries. Tato helps them streamline communication, onboard new team members faster, and manage risks more effectively. It also supports enterprise-grade security with single-tenant architecture and SOC 2 compliance, ensuring that sensitive project data remains protected.
Tato was founded by Justin, a seasoned enterprise architect who became the youngest person in Canada to earn the title of Microsoft Distinguished Enterprise Architect. Over the past decade, he has helped more than 60 companies implement ERP systems. He teamed up with Vlad Lokshin, a serial entrepreneur known for founding DarwinApps and Turtle, and Mathieu Chrétien, who played a key role in scaling Talent.com to over $100 million in revenue.
Tato also works with enterprise clients, such as Héroux Devtek, a manufacturer of landing gear systems. By resolving scope disputes and improving operational efficiency, Tato helped Héroux Devtek save more than $500,000.
How the funding will be used: With this new funding, Tato is positioned to expand its reach and continue addressing the long-standing challenges of ERP implementation.
KEY QUOTES:
“I spent years watching ERP projects fail, companies lose millions, people lose their jobs. AI can finally give projects the memory and foresight they’ve lacked.”
Justin Delisle, Tato co-founder and CEO
“You couldn’t find a better team to transform ERP implementation. Tato’s co-founders are domain experts and proven company- and product-builders. Justin is a globally recognized leader in the space. He speaks the language of system integrators stuck in ERP purgatory.”
Akriti Dokania, Partner at Ridge Ventures
“We’re rolling out Tato across all of our projects. We were skeptical at first, but the ability to instantly retrieve context from meetings we had weeks ago was a game-changer. What used to take days now takes minutes. Tato gives us back the time to focus on what matters, and in the end, the customer benefits most.”
Frédérique Lacroix, Project Manager at Gestisoft
“Working with Tato on our SAP ERP implementation was one of the best decisions we made. On a multi-site project spanning Canada, the US, the UK, and Spain, I couldn’t be everywhere at once. Tato automatically captured key details and decisions, even for meetings I missed, and acted as an unbiased third-party if any disputes arose. Tato’s visibility and recall are crucial for projects of this scale.”
Michael Parke, IT Director at Héroux Devtek
