Hourly, a Palo Alto-based startup that simplifies workers’ comp insurance, payroll and time tracking for small business owners, announced today that it has raised $7.15 million in seed funding. The round was led by Aya Peterburg and Haim Sadger of S Capital, with participation from Inovia Capital, J-Angels and 22 angel investors, including Amir Faintuch, SVP at Global Foundries, and Francoise Brougher, COO of Pinterest. Faintuch, who has been an advisor to Hourly, joined as Executive Chairman of the Board. The raised capital will be used to expand rapidly into new markets.
“There’s a significant gap in the payroll and workers’ comp market, because many small businesses rely heavily on outdated tools and services”
Hourly launched earlier this year and is the only workers’ comp, payroll and time tracking platform purpose-built for small businesses. Hourly can save employers thousands of dollars on workers’ comp insurance by partnering with insurance providers and leveraging real-time payroll data. The Hourly platform also ensures accurate reporting down to the penny and helps avoid over- or underpayment of workers’ comp insurance premiums.
Hourly’s co-founder and CEO, Tom Sagi, is a serial entrepreneur with years of experience in the SMB segment. “I have seen business owners spending an entire day each week reconciling payroll, figuring out workers’ comp premiums and struggling with processing payroll. I thought, there has to be a better way,” said Sagi. “I wanted to liberate folks from that weekly ordeal, and with the incredible support of our investors, we’re well on our way to making employee management better for small business owners.”
Sagi’s co-founder and CTO is Shay Litvak, a technologist with 20 years of experience. The duo built Hourly as a mobile-first platform that empowers small businesses with the tools to manage all aspects of the workforce from their phones or computers. Hourly’s focus on ease, convenience and transparency helps business owners save time and money and build trust with employees.
“Small businesses with hourly employees have complex and unique needs, which legacy, rigid and inflexible software platforms are underserving,” said Aya Peterburg, a founding partner of S Capital. “Hourly is well-positioned to add another dimension of flexibility and expediency to managing that segment, and ultimately create a much more efficient workplace.”
“There’s a significant gap in the payroll and workers’ comp market, because many small businesses rely heavily on outdated tools and services,” said Haim Sadger, founding partner of S Capital and a 21-year veteran of Sequoia Capital. “Tom, with his sharp business acumen, and Shay, with his strong technology background, have come together to solve this problem in a way that is transforming the industry. We’re proud to be part of the team bringing game-changing technology to the hands of small business owners.”
Hourly is a Palo Alto-based Fintech and Insurtech startup with a single mission – liberate small business owners from cumbersome processes related to workers’ comp, payroll and time tracking. Hourly has created an easy-to-use mobile-first technology platform for small businesses to manage, pay and insure their workforce from wherever work takes them. The company recently raised $7.15 million in seed funding. Hourly is currently available in California and is rapidly expanding into other markets throughout 2020. Learn more at www.hourly.app.