The team at Finch reveals they’ve raised $40M in their Series B round, “co-led by General Catalyst and Menlo Ventures, with additional investments from QED, PruVen, and Altman Capital.”
As mentioned in the update, the workforce is “the backbone of the U.S. economy.”
From retirement to health insurance to mental health, “the responsibilities of employers have increased significantly over the years.”
Despite the challenges posed by the macro backdrop, U.S. employment “has been growing steadily, with the unemployment rate at its lowest in 54 years.”
However, the employment ecosystem “faces significant challenges due to a lack of data accessibility.”
Over 580M+ U.S. employment records and $15T of funds “are processed across 20,000+ employment data systems, including payroll, HRIS, benefits administration, and others.”
Moreover, the ecosystem “lacks necessary connectivity, with records mainly passed via manual data entry, SFTP, and emails filled with sensitive information.”
Finch says they are here “to change that by making it easy to access data and direct payments across the sector with our unified employment API.”
They’ve made significant progress “since announcing our Series A just eight months ago.”
- Several months of positive cash flow and a 12x increase in revenue since the company’s Series A round announced in June 2022.
- Over 2 million employees connected through the Finch platform.
- Over 60 employees globally, representing 4x Y/Y growth
- New partnerships with leading employment platforms, including BambooHR, HiBob, and others yet to be announced.
With this funding, they will “accelerate connectivity across the employment data ecosystem and help employers and employees use the products and services they need to grow and thrive.”
They’re putting this capital to work by “investing in new and existing products and expanding our team to support customers and partners across the HR, Fintech, and Benefits verticals.”
Their vision is “to build a future where employment is connected and programmable.”
With Finch, applications can instantly “gain compatibility with 200+ employment systems to provide products and services to employers.”