Spur, a new Employment-as-a-Service (EaaS) platform, raised $8 million in a Series A funding round led by Third Prime, with participation from Mark Bezos and Blue Ridge Capital Founder John Griffin. Spur also appointed Bezos to its Board of Directors. This investment marks one of the largest venture rounds ever raised by an Alabama-based company.
“We started Spur with a mission to provide workers greater access to opportunity and ultimately improve their quality of life. We’re doing that by partnering with businesses and other organizations to take on all the responsibilities associated with managing HR and payroll for their hourly workforces and then ensuring those workers are well taken care of over the course of their employment,” stated Spur Founder and CEO Glenn Clayton. “We believe most businesses want to treat their workers well – we’re just making it easier and more cost effective than ever before to deliver on that goal. Third Prime, Mark Bezos and our other investors joining the Spur mission further validates the importance of what we have built and the enormous market demand for better ways to manage employment for America’s growing hourly workforce.”
Spur aims to address a market opportunity in the hourly worker economy, which is comprised of approximately 78 million workers or nearly 60 percent of all American jobs. Spur’s platform offers workplaces such as hotels, restaurants, and other businesses with hourly workforces a managed solution for all their employment needs that saves them time and money, while also improving the benefits and services available to the workforce.
Spur will use the new funding to accelerate growth within the hospitality industry, one of the largest and fastest growing segments of the hourly workforce. In addition, Spur plans to bolster its corporate and executive team, roll out the service across additional metro areas and continue development of its employment platform and products.
Spur’s platform combines innovative employment technology with a focus on managing hourly workforces, and therefore not only becomes the official employer of record of a business’s hourly workforce but also aims to help businesses reduce costs and save time by eliminating all HR and payroll functions.
Businesses using the platform schedule their employees and approve their time through Spur’s app, and employees may take advantage of a customized suite of benefits, perks, and other services specifically designed for hourly workers including faster pay options, healthcare, savings accounts, discounted products and services, and paid sick leave. In addition, Spur helps workers find side gigs and other opportunities to boost their income and find added stability.
Since launching in 2017, Spur has added thousands of workers to its platform across multiple cities including New York, Chicago, Atlanta, Orlando, Birmingham and Houston. Headquartered in Huntsville, Alabama, the company expects to launch in other major metros throughout 2019.
Crowdfund Insider had the opportunity to connect with Spur Founder and CEO Glenn Clayton via email for a quick Q&A to learn more about his Series A experience, the American service economy and growth. Our interview follows.
Crowdfund Insider: How is the American job landscape evolving?
Glenn Clayton: As the service economy continues to grow, more and more jobs are becoming hourly or project-based. This underlying reality is what has led to the growth of the “gig economy” as well as the growth in traditional hourly jobs. This growth in hourly and gig jobs means that more and more workers are juggling a variety of part-time and full-time jobs and gigs instead of one long-term career. These changes are forcing businesses to rethink how they attract, retain, and serve their workforces.
CI: Please describe your Series A experience.
Clayton: We met with several really high-quality investors over several months. While all of them had unique things to contribute, we felt the combination of investors we ended up going with were the best fit for us at this time in our lifecycle.
CI: Who are Spur’s key clients?
Clayton: We have two primary customers: hourly workers and the businesses and organizations they work at. We’re currently focused primarily on workers and workplaces within the hospitality and education industries. We recently partnered with Yedla Hotel Management which operates Marriott hotels throughout the country. We also work with Ruth’s Chris Steakhouse, The Houston Food Bank and Saw’s BBQ.
CI: How does the platform source new clients?
Clayton: Workers join Spur when their workplace decides to sign up. Workplaces find us through a variety of ways including digital marketing, sales, and customer referrals.
CI: What are the expectations for this year and next year?
Clayton: Our goals center around growth. We want to grow the number of workers we serve, grow the number of workplaces who trust us to take care of their workers, and grow the amount of benefits and services we are able to offer our workers.