Last week, Lavante raised a new $8 million funding round in an effort led by SAP Ventures (as background on Lavante and the funding round, please read our initial coverage of the news). We think the SAP Ventures connection is intriguing, given the fact that the ERP giant already sells technology directly in this area (SAP sells a supplier management module as a separate component of its Sourcing product, leveraging an updated version of the original Frictionless architecture and code base). However, to the best of our knowledge, SAP has not leveraged its Sourcing/Supplier Management product or any other to pursue the audit recovery market. Regardless, it will be interesting to observe whether or not the SAP investment will lead to closer commercial ties between the organizations.
We reached out to Lavante’s president Joe Flynn last week to learn more about the direction they plan to take based on their new funding round and SAP Ventures relationship. We first asked Joe what he saw were the largest potential new/expanded areas of R&D investment for Lavante given the funding round. His response was that “Lavante focuses on on-demand supplier management solutions that provide quick time to value, drive supplier participation and are self-funding. We are going to invest aggressively in additional capabilities across our integrated recovery auditing and supplier information management solutions, while continuing to drive adoption of the Lavante Supplier Network.”