Finch Raises $15 Million in Series A Funding to Expand its Universal Employment API
Finch, the universal employment API, announced it has raised $15 million in Series A funding. The round was led by Menlo Ventures, alongside General Catalyst, Bedrock, Sempervirens, and Y Combinator. The round follows $3.5 million in seed funding led by General Catalyst in 2020. The Series A financing will be used to drive growth initiatives, expand the team, and extend the reach of Finch's connectivity and data products. Matt Murphy, managing director of Menlo Ventures, will join Finch's board of directors. Croom Beatty, partner at Menlo Ventures, and Alex Tran, managing director at General Catalyst, will join as board observers.
SAN FRANCISCO, June 8, 2022 /PRNewswire-PRWeb/ -- Finch, the universal employment API, announced it has raised $15 million in Series A funding. The round was led by Menlo Ventures, alongside General Catalyst, Bedrock, Sempervirens, and Y Combinator. The round follows $3.5 million in seed funding led by General Catalyst in 2020. The Series A financing will be used to drive growth initiatives, expand the team, and extend the reach of Finch's connectivity and data products. Matt Murphy, managing director of Menlo Ventures, will join Finch's board of directors. Croom Beatty, partner at Menlo Ventures, and Alex Tran, managing director at General Catalyst, will join as board observers.
The employment sector experienced a massive transformation over the past two years as employers and employment applications that serve them scrambled to meet the rising expectations of today's workforce. Connectivity was nonexistent, and companies were forced to use CSV uploads, connect via SFTP, get added as an external administrator, or spend millions on building integrations just to transfer data between their applications and the other systems in employers' tech stacks. Because employment systems require an extensive infrastructure layer and robust data connectivity, building scalable infrastructure for the next generation of employment applications was onerous. Additionally, the industry's fragmentation into more than 6,000 employment providers across the U.S., coupled with edge cases and the complexity of the underlying data and functions, added new problems.
Finch addressed these challenges by creating a solution that streamlines data transfers. Since 2020, Finch's API has acted as the connectivity layer in the fragmented ecosystem, allowing applications to compliantly request and securely access employment data stored in their customers' employment systems. This functionality seamlessly connects underlying employment systems across HR, payroll, and benefits, including mission-critical infrastructure in applications across B2B fintech, benefits, HR, and enterprise verticals.
"With this next round of funding, we will enable our customers to better serve employers and employees by leveraging our industry-leading API, providing the infrastructure for more innovative solutions across the employment sector," said Jeremy Zhang, CEO of Finch.
The challenges facing the employment sector become more solvable through Finch's employment API. Partners can make their compensation systems more transparent, equitable, and fair. Employees can easily tap into retirement savings options or find increased access to mental health benefits. SMBs can unlock millions in tax credits, while companies of all sizes can automate lengthy compliance processes.
"Legacy systems of record for employee compensation and benefits were typically closed, inaccessible, or cumbersome to access," said Matt Murphy, managing director at Menlo Ventures. "The Finch team has elegantly provided this connectivity and allowed a massive new part of the fintech ecosystem to flourish. We're excited to be doubling down and leading their Series A."
Recent Finch milestones include compatibility with 150+ employment systems, coverage of 88+% of U.S. employers, 5M+ daily API calls, 10,000+ employers connected to Finch's infrastructure from start-ups to publicly traded enterprises, and 10x year-on-year growth.
For more information about Finch's universal employment API, please visit https://tryfinch.com/.
Media Contact
Jeremy Zhang, Finch, 1 4077413626, [email protected]
SOURCE Finch
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