Payroll Startup Hourly Raises $7.15M In Seed Round

Hourly — a FinTech startup that helps with workers’ comp insurance, time-tracking and payroll for small businesses — has raised $7.15 million in a Seed funding round, according to a press release.

The company — based in Palo Alto, California — launched earlier this year, and is currently the only startup of its kind. Hourly said it can save employers thousands of dollars on workers’ comp insurance by fostering partnerships with insurance companies, and leveraging payroll data “down to the penny” to help ensure accurate payment.

“There’s a significant gap in the payroll and workers’ comp market, because many small businesses rely heavily on outdated tools and services,” said Haim Sadger, veteran of Sequoia Capital and founding partner of S Capital.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.”

The funding round was led by Sadger and S Capital’s Aya Peterburg, while Inovia Capital, J-Angels and the COO of Pinterest participated, among others. The company said it will use the money for rapid expansion into new markets.

“Small businesses with hourly employees have complex and unique needs, which legacy, rigid and inflexible software platforms are underserving,” said Peterburg. “Hourly is well-positioned to add another dimension of flexibility and expediency to managing that segment, and ultimately create a much more efficient workplace.”

Hourly Co-founder and CEO is Tom Sagi, a serial entrepreneur, has years of experience working with small businesses.

“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,'” Sagi said. “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.”