Total amount raised
$20 Millions
Latest funding date
2/1/2022
Location
Sparrow has successfully raised significant funding through multiple rounds, including a Series A round backed by investors such as Authentic Ventures and WndrCo. The platform specializes in employee leave and payroll management solutions, offering a comprehensive suite of tools for HR professionals and payroll managers.
Keep reading to explore the intricacies of Sparrow's fundraising journey and the investors backing this innovative platform.
What Is Sparrow?
Founded in 2018, Sparrow is an HR technology firm based in San Francisco, California. The company specializes in providing comprehensive leave and payroll management solutions for employers.
Co-founded by Deborah Hanus and Samarth Keshava, Sparrow aims to streamline the leave management process through automation and integration. Their platform offers a centralized portal for notifications, communication, and compliance.
With a team of 101-250 employees, Sparrow continues to innovate in the HR tech space, making leave management more efficient and less stressful for both employers and employees.
How Much Funding Has Sparrow Raised?
- Series A
- Amount Raised: $20M
- Date: February 2022
- Lead Investors: WndrCo, Authentic Ventures, South Park Commons
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Accelerate sales, marketing, and product development activities in North America. Scale their team by hiring for several key positions.
- Venture Round
- Amount Raised: Not disclosed
- Date: November 2021
- Lead Investors: SHAKTI
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Expand market reach and enhance product offerings.
- Series A
- Amount Raised: Not disclosed
- Date: February 2021
- Lead Investors: Not disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: Initial funding to develop and launch the platform.
Total Amount Raised: $20M. Current Valuation: Not publicly disclosed.
Key Investors
- WndrCo
- Details: WndrCo is a holding company that invests in technology and media companies. It was co-founded by Jeffrey Katzenberg, former CEO of DreamWorks Animation.
- Investment Focus Areas: Technology, media, entertainment.
- Notable Investments: Quibi, MasterClass, Aura.
- Authentic Ventures
- Details: Authentic Ventures is a venture capital firm that focuses on early-stage investments. The firm aims to support diverse and underrepresented founders.
- Investment Focus Areas: Technology, software, diversity-focused startups.
- Notable Investments: Blavity, Mayvenn, Wonderschool.
- South Park Commons
- Details: South Park Commons is a community-driven venture fund that invests in early-stage technology startups. It was founded by Ruchi Sanghvi, the first female engineer at Facebook.
- Investment Focus Areas: Technology, software, community-driven projects.
- Notable Investments: Figma, Airtable, Webflow.
- SHAKTI
- Details: SHAKTI is a venture capital firm that invests in innovative startups. The firm focuses on empowering entrepreneurs and fostering growth in emerging markets.
- Investment Focus Areas: Technology, healthcare, emerging markets.
- Notable Investments: Not publicly disclosed.
What's Next for Sparrow?
With $20 million in Series A funding, Sparrow is poised to accelerate its sales, marketing, and product development activities across North America. The company plans to scale its team by hiring key positions in engineering, product, operations, sales, and marketing, tapping into the growing demand for employee wellness and compliance solutions.
Future fundraising opportunities seem promising as Sparrow continues to expand its market reach and enhance its Employee Care Management solutions. However, the company may face challenges in managing rapid growth and ensuring compliance with various regulations. Competing with other firms in the Employee Care Management space will also be a significant hurdle.
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