- Workers’ compensation platform Hourly raised a $27 million Series A round led by Gillot Capital Partners.
- The startup’s app helps small businesses streamline worker payroll and insurance.
- Check out the 23 slide deck used to secure fresh funds.
A startup that tracks worker compensation, payroll, and time logging on a single platform just raised $27 million in fresh funding.
The California-based Hourly, which was founded in 2019, aims to save businesses thousands of dollars in insurance costs. Founder Tom Sagi came up with the idea for the company when he was struggling to find an alternative to the tedious process of managing invoices and tracking timesheets on an hourly basis.
“The vision was simple,” Sagi told Insider. “I wanted to be able to pay my entire team in minutes from my phone and see my real-time labor costs, including workers’ compensation insurance, down to the penny.”
The Hourly app streamlines the payroll process by allowing companies to pay employees in less than a minute and calculate their compensation in real time. Employees can manage their payroll deductions, access their tax documents – which are automatically deposited – and set up direct deposit.
“We started by selling our payroll and time tracking platform, but quickly realized that to solve the exact business problem, we needed to add the workers’ health insurance piece of the puzzle,” Sagi said. .
Business owners can subscribe to the Hourly platform, with a starting monthly fee of $6 per person.
The round was led by Israeli venture capital firm Gillot Capital Partners, which previously backed business management startups Cider and insurance tech startup At-Bay, with participation from existing seed investors S Capital, Vintage Investment Partners and other J-Ventures funders. This brings the startup’s total funding to almost $35 million.
Sagi noted some key tips for founders to consider as they move from fundraising for a seed round to a Series A.
“Building and maintaining a strong relationship with existing investors is another essential job for startup founders,” he said.
While the start-up phase “encompassed more storytelling,” there “already is traction and KPIs that you can look at during a Series A,” he added.
Sagi stressed the importance of amplifying achievements, positive trends and sharing growth goals so that investors have a sense of their vision. In a Series A, “data analysis matters much more” and must support the larger narrative that a game relays.
With the new funds, Hourly will expand its operations outside of California and expand its service offerings to cover one-third of the U.S. population by the end of 2023.
Check out the 23 slide deck used to raise the cool funds.
