Finch has successfully raised $58.5 million over three funding rounds, with its latest round being a Series B in February 2023. The platform unifies payroll, HR, and benefits under a single API, aiming to democratize access to employment infrastructure.
Keep reading to explore the intricacies of Finch's fundraising journey and the investors backing this innovative platform.
What Is Finch?
Finch, founded by Ansel Parikh and Jeremy Zhang, is based in the San Francisco Bay Area. The company unifies payroll, HR, and benefits under a single API, aiming to democratize access to employment infrastructure.
With a team of 51-200 employees, Finch is a Series A Y-Combinator company backed by top investors like General Catalyst and Menlo Ventures. Customers such as Carta and Betterment are already leveraging Finch's innovative platform.
Finch's mission is to facilitate innovations and economic activities for both employers and employees by providing seamless integration and data management across various employment systems.
How Much Funding Has Finch Raised?
- Seed Funding Round
- Amount Raised: $3.5 million
- Date: December 8, 2020
- Lead Investors: General Catalyst
- Motivation Behind the Round: To build out Finch's HR and payroll-focused API business, support rapid growth, and develop the API to support a wide range of payroll and HR systems.
- Series A Funding Round
- Amount Raised: $15 million
- Date: June 8, 2022
- Lead Investors: Menlo Ventures
- Motivation Behind the Round: To grow the workforce and expand the platform's capabilities.
- Series B Funding Round
- Amount Raised: $40 million
- Date: February 22, 2023
- Lead Investors: General Catalyst and Menlo Ventures
- Motivation Behind the Round: Extend coverage to more payroll, HR, and benefits systems, expand into new employment data verticals, introduce new functionalities, and grow the engineering, product, and success teams.
Total Amount Raised: $58.5 million. Current Valuation: $200 million (~estimated).
Key Investors
- General Catalyst
- Details: General Catalyst is a venture capital firm that invests in early-stage and growth-stage companies. Alex Tran, Managing Director at General Catalyst, is on Finch's board of directors.
- Investment Focus Areas: Technology, healthcare, consumer products
- Notable Investments: Airbnb, Stripe, Snap
- Menlo Ventures
- Details: Menlo Ventures is a venture capital firm that provides capital for seed through growth technology companies. They led Finch's Series A funding round.
- Investment Focus Areas: Consumer technology, enterprise technology, life sciences
- Notable Investments: Uber, Roku, Warby Parker
- QED Investors
- Details: QED Investors specializes in investing in early-stage, disruptive financial services companies. They participated in Finch's Series B funding round.
- Investment Focus Areas: Financial services, fintech, insurtech
- Notable Investments: Credit Karma, SoFi, Avant
- Bedrock
- Details: Bedrock focuses on transformative technology companies. They participated in Finch's Series A funding round.
- Investment Focus Areas: Technology, software, innovation
- Notable Investments: Not specified
- Sempervirens
- Details: Sempervirens specializes in HR tech and workforce transformation. They participated in Finch's Series A funding round.
- Investment Focus Areas: HR tech, workforce transformation, technology
- Notable Investments: Not specified
What's Next for Finch?
Finch is poised to capitalize on the growing demand for integrated payroll, HR, and benefits systems. With plans to extend coverage to more systems and expand into new employment data verticals, the company is well-positioned to become a key player in the HR tech industry. The platform's current reach of over 1.8 million employees across 200+ systems highlights the vast opportunity ahead.
Future fundraising seems likely as Finch continues to grow and innovate. The recent $40 million Series B funding round underscores investor confidence, suggesting that additional rounds could support further expansion and development. However, challenges such as integrating diverse systems and managing rapid growth will require careful navigation.
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