Stackpack has secured USD $6.3 million in new funding to support its platform aimed at managing the increasing complexity of third-party vendor relationships in businesses.
The funding round was led by Freestyle Capital, with participation from Elefund, Upside Partnership, Nomad Ventures, Layout Ventures, MSIV Fund, and strategic angel investors from Intuit, Workday, Affirm, Snapdocs, and xAI.
Stackpack was established in 2023 by Sara Wyman, who previously held roles at Etsy and Affirm.
The company was founded to provide a solution for businesses facing difficulties and rising costs associated with managing a diverse array of third-party software providers, services, and contractors.
Businesses are increasingly dependent on external vendors, including AI tools, SaaS platforms, contractors, and managed service providers. According to Stackpack, over USD $475 billion is spent each year in the United States on third-party software and services, with approximately 25% of this expenditure going unused.
Stackpack's platform seeks to address this issue by offering finance and IT teams a central source of truth for all third-party vendors. It intends to automatically surface renewal dates, contract owners, shadow IT, compliance gaps, and potential opportunities for savings. The platform uses artificial intelligence to identify areas of risk and inefficiency, while also acting as an agent for customers to ensure that key vendor management activities are not missed.
The founder of Stackpack, Sara Wyman, said, "The majority of companies aren't managing the entities that power them. Companies think of themselves as 'people-first' – but today they're 'vendor-first'."
"There are typically 6x more vendors than employees at the average U.S. company, and that number is quickly increasing. And there isn't a system to manage that shift."
Stackpack's team includes early leaders from companies such as PayPal, eBay, Adobe, Asana, Twilio, and Google, bringing experience in building and scaling technology platforms.
The company's platform is debuting at a time when financial and compliance risks associated with vendor management are becoming more pronounced. Organisations often lack transparency regarding renewal dates and pricing, making it difficult to manage budgets and forecasts.
Stackpack argues that finance and IT teams require real-time visibility and automated controls to manage these risks effectively.
Dave Samuel, General Partner at Freestyle Capital, commented, "Every vendor decision today carries financial, legal, and privacy implications — it's a C-suite concern. You wouldn't manage employees or customers in spreadsheets, so why are we still doing that for vendors? Stackpack is automating the entire vendor lifecycle – from discovery and evaluation to renewals – bringing visibility, control, and strategic oversight to every stage. With this foundation in place, they're uniquely positioned to connect buyers and sellers in smarter, more transparent partnerships."
Following its launch, Stackpack is already used to manage over 10,500 vendors and USD $510 million in spending across a customer base of more than 50 companies, which includes names such as Every Man Jack, Rho, Density, HouseRx, Fexa, and ZeroEyes.
Brandon Lee, Accounting Manager at BizzyCar, said, "The CFO is on the hook when something gets missed. Stackpack means we don't have to cross our fingers every quarter."
Arthur Wei, Controller at Stride Health, added, "Vendor buying is decentralized – but it comes back to the finance team to manage financial health and reporting."
Stackpack is also expanding its offerings with the introduction of Requests & Approvals, a product currently in beta designed to provide a faster approval process for vendor requests. This new tool is described as a more accessible alternative to existing platforms without the complexity of larger procurement management systems. Over time, the company plans to further assist its customers in discovering and evaluating new vendor partners.
Sara Wyman outlined the company's future direction, stating, "This isn't just a finance problem. It's a foundational shift. We not only need to be the eyes and ears to help companies reduce cost and risk, but also find the right tools for their budget and size. Managing your vendors and partners should be as strategic as managing your talent – vendor ecosystems are the next major competitive edge."
