Check out the 23-slide pitch deck Hourly, an insurance tech startup streamlining workers’ comp, used to raise $27 million
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- Worker compensation platform Hourly raised a $27 million Series A led by Gillot Capital Partners.
- The startup’s app enables small businesses to streamline workers’ payrolls and insurance.
- Check out the 23-slide deck used to secure the fresh funds.
A startup that tracks workers’ compensation, payroll, and time-logging in one platform just raised $27 million in fresh funds.
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 struggled to find an alternative to the time-consumer 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 whole team in minutes from my phone and see my real-time labor costs, including workers’ comp insurance, down to the penny.”
Hourly’s app streamlines the payroll process by enabling companies to pay employees in under a minute and calculate their compensation in real-time. Employees can manage their withholdings, access their tax documents — which are automatically filed — and set up a direct deposit.
“We started off selling our payroll and time tracking platform, but quickly realized that in order to solve the exact problem that businesses have, we need to add the workers’ comp insurance piece of the puzzle,” Sagi said.
Business owners can subscribe to Hourly’s platform, with a monthly starting rate of $6 per person.
The round was led by Israeli-VC firm Gillot Capital Partners, which has previously backed enterprise management startups Cider and insurance tech startup At-Bay, with existing seed investors S Capital, Vintage Investment Partners, and additional backers J-Ventures participating. This brings the startup’s total funding to nearly $35 million.
Sagi noted some key tips for founders to consider as he transitioned away from fundraising for a seed round to a Series A.
“Building and maintaining a strong relationship with existing investors is another critical job for startup founders,” he said.
While the seed stage “encompassed more storytelling”, there’s “already traction and KPIs you can look at during a Series A,” he added.
Sagi highlighted the importance of amplifying achievements, positive trends, and sharing growth objectives so that investors had an idea of their vision. In a Series A, the “data analytics matter much more” and have to support the wider narrative that a deck is relaying.
With the fresh funds, Hourly will expand its operations out of California, and grow its service offerings to cover a third of the US population by the end of 2023.
Check out the 23-slide deck used to raise the fresh funds.