Suger Raises $15 million Series A to Automate Workflows for B2B Marketplaces

Suger.io, the API-first platform helping high-growth software companies transact on cloud marketplaces, announced  the successful completion of its $15 million Series A funding round led by Threshold Ventures with participation from existing investors Craft Ventures, Intel Capital, and Y Combinator.

“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”

Cloud marketplaces provide phenomenal benefits to enterprises such as larger deal sizes, faster sales cycles, and minimal risk of late payments. It has become the fastest-growing channel for B2B software sales , with total annual transactions projected to exceed $100 billion by 2028. However, companies struggle with maintenance of integrations to multiple marketplaces and orchestrating workflows to transact at scale.

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“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,” said Jon Yoo, co-founder and CEO of Suger.

Founded in 2022, Suger’s AI-powered platform automates the entire quote-to-cash process which streamlines fulfillment for self-serve products, and frees go-to-market teams from engineering and operational burdens.

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Lisa Xu, Partner at Threshold Ventures, shared her enthusiasm: “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.”

Suger has quickly become a leading player for tech companies navigating cloud marketplaces. In 2024, 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. With its robust 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.

What’s next?

Suger is forging 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.