The a16z Show · Friday, October 2, 2026
Vlad Kyle, CEO of Leo, argues that AI-native startups have an advantage over established software vendors in enterprise procurement because incumbents are limited to their system of record and don't handle the end-to-end job. He explains that much of the actual work, such as negotiations and exception handling, happens outside these systems, across emails, spreadsheets, and contracts.
“I absolutely still think there's obviously still a case for the AI-native startup, and it really centers around the fact that the legacy incumbent is limited to their system of record and that record that they have, and they're not completing the end-to-end job.”
“So that could be illegal. So owning everything from brief all the way through trial. Well, I can talk more about procurement, but it's really the concept of owning the end-to-end work.”
“So like most of the work in procurement actually happens. outside of this ERP or any system of record.”