Feb
06
2020
--

Datree announces $8M Series A as it joins Y Combinator

Datree, the early-stage startup building a DevOps policy engine on GitHub, announced an $8 million Series A today. It also announced it has joined the Y Combinator Winter 20 cohort.

Blumberg and TLV Partners led the round with participation from Y Combinator . The company has now raised $11 million with the $3 million seed round announced in 2018.

Since that seed round, company co-founder and CEO Shimon Tolts says that the company learned that while scanning code for issues was something DevOps teams found useful, they wanted help defining the rules. So Datree has created a series of rules packages you can run against the code to find any gaps or issues.

“We offer development best practices, coding standards and security and compliance policies. What happens today is that, as you connect to Datree, we connect to your source code and scan the entire code base, and we recommend development best practices based on your technology stack,” Tolts explained.

He says that they build these rules packages based on the company’s own expertise, as well as getting help from the community, and in some cases partnering with experts. For its Docker security package, it teamed up with Aqua Security.

The focus remains on applying these rules in GitHub where developers are working. Before committing the code, they can run the appropriate rules packages against it to ensure they are in compliance with best practices.

Datree rules packages. Screenshot: Datree

Tolts says they began looking at Y Combinator after the seed round because they wanted more guidance on building out the business. “We knew that Y Combinator could really help us because our product is relevant to 95 percent of all YC companies, and the program has helped us go and work on six figure deals with more mature YC companies,” he said.

Datree is working directly with Y Combinator CEO Michael Seibel, and he says being part of the Winter 20 cohort has helped him refine his go-to-market motion. He admits he is not a typical YC company having been around since 2017 with an existing product and 12 employees, but he thinks it will help propel the company in the long run.

Oct
23
2019
--

Demodesk scores $2.3M seed for sales-focused online meetings

Demodesk, an early-stage startup that wants to change how sales meetings are conducted online, announced a $2.3 million seed investment today.

Investors included GFC, FundersClub, Y Combinator, Kleiner Perkins and an unnamed group of angel investors. The company was a member of the Y Combinator Winter 2019 cohort.

CEO and co-founder Veronika Riederle says that the fact it’s so closely focused on sales separates it from other more general meeting tools like Zoom, WebEx or GoToMeeting. “We are building the first intelligent online meeting tool for customer-facing conversations. So that is for inside sales and customer service professionals,” Riederle explained.

One of the key pieces of technology is what Riederle calls “a unique approach to screen sharing.” Whereas most meeting software involves downloading software to use the tool, Demodesk doesn’t do this. You simply click a link and you’re in. The two parties online are seeing a live screen and each can interact with it. It’s not just a show and tell.

What’s more, in a sales scenario with a slide presentation, the customer sees the same live screen as the salesperson, but while the salesperson can see their presentation notes, the customer cannot.

She said while this could work for any number of scenarios, from customer service to IT Help desks, at this stage in the company’s development she wants to concentrate on the sales scenario, then expand the vision over time. The service works on a subscription model with tiered per user pricing starting at $19 per user, per month.

When they got to Y Combinator, the company already had a working product and paying customers, but Riederle says the experience has helped them grow the business to moew than 100 customers. “YC was extremely important for us because we immediately got access to an extremely valuable network of founders and potential customers, and also just a base for us to really [develop] the business.

Riederle founded the company with CTO Alex Popp in 2017 in Munich. Prior to this seed round, the founders mostly bootstrapped the company. With the $2.3 million, it should be able to hire more people and begin building out the product further, while investing in sales and marketing to expand its customer base.

Sep
19
2019
--

Quilt Data launches from stealth with free portal to access petabytes of public data

Quilt Data‘s founders, Kevin Moore and Aneesh Karve, have been hard at work for the last four years building a platform to search for data quickly across vast repositories on AWS S3 storage. The idea is to give data scientists a way to find data in S3 buckets, then package that data in forms that a business can use. Today, the company launched out of stealth with a free data search portal that not only proves what they can do, but also provides valuable access to 3.7 petabytes of public data across 23 S3 repositories.

The public data repository includes publicly available Amazon review data along with satellite images and other high-value public information. The product works like any search engine, where you enter a query, but instead of searching the web or an enterprise repository, it finds the results in S3 storage on AWS.

The results not only include the data you are looking for, it also includes all of the information around the data, such as Jupyter notebooks, the standard workspace that data scientists use to build machine learning models. Data scientists can then use this as the basis for building their own machine learning models.

The public data, which includes more than 10 billion objects, is a resource that data scientists should greatly appreciate it, but Quilt Data is offering access to this data out of more than pure altruism. It’s doing so because it wants to show what the platform is capable of, and in the process hopes to get companies to use the commercial version of the product.

Screen Shot 2019 09 16 at 2.31.53 PM

Quilt Data search results with data about the data found (Image: Quilt Data)

Customers can try Quilt Data for free or subscribe to the product in the Amazon Marketplace. The company charges a flat rate of $550 per month for each S3 bucket. It also offers an enterprise version with priority support, custom features and education and on-boarding for $999 per month for each S3 bucket.

The company was founded in 2015 and was a member of the Y Combinator Summer 2017 cohort. The company has received $4.2 million in seed money so far from Y Combinator, Vertex Ventures, Fuel Capital and Streamlined Ventures, along with other unnamed investors.

Sep
10
2019
--

Work Life Ventures raises $5M for debut enterprise SaaS seed fund

Brianne Kimmel had no trouble transitioning from angel investor to general partner.

Initially setting out to garner $3 million in capital commitments, Kimmel, in just two weeks’ time, closed on $5 million for her debut venture capital fund Work Life Ventures. The enterprise SaaS-focused vehicle boasts an impressive roster of limited partners, too, including the likes of Zoom chief executive officer Eric Yuan, InVision CEO Clark Valberg, Twitch co-founder Kevin Lin, Cameo CEO Steven Galanis, Andreessen Horowitz general partners Marc Andreessen and Chris Dixon, Initialized Capital GP Garry Tan and fund-of-funds Slow Ventures, Felicis Ventures and NFX.

At the helm of the new fund, Kimmel joins a small group of solo female general partners: Dream Machine’s Alexia Bonatsos is targeting $25 million for her first fund; Day One Ventures’ Masha Drokova raised $20 million for her debut effort last year; and Sarah Cone launched Social Impact Capital, a fund specializing in impact investing, in 2016, among others.

Meanwhile, venture capital fundraising is poised to reach all-time highs in 2019. In the first half of the year, a total of $20.6 billion in new capital was introduced to the startup market across more than 100 funds.

For most, the process of raising a successful venture fund can be daunting and difficult. For well-connected and established investors in the Bay Area, like Kimmel, raising a fund can be relatively seamless. Given the speed and ease of fund one in Kimmel’s case, she plans to raise her second fund with a $25 million target in as little as 12 months.

“The desire for the fund is to take a step back and imagine how do we build great consumer experiences in the workplace,” Kimmel tells TechCrunch.

Kimmel has been an active angel investor for years, sourcing top enterprise deals via SaaS School, an invite-only workshop she created to educate early-stage SaaS founders on SaaS growth, monetization, sales and customer success. Prior to launching SaaS School, which will continue to run twice a year, Kimmel led go-to-market strategy at Zendesk, where she built the Zendesk for Startups program.

 

View this post on Instagram

 

? available offline #google #remote

A post shared by Work Life Ventures (@worklifevc) on

“You start by advising, then you start with very small angel checks,” Kimmel explains. “I reached this inflection point and it felt like a great moment to raise my own fund. I had friends like Ryan Hoover, who started Weekend Fund focused on consumer, and Alexia is one of my friends as well and I saw what she was doing with Dream Machine, which is also consumer. It felt like it was the right time to come out with a SaaS-focused fund.”

Emerging from stealth today, Work Life Ventures will invest up to $150,000 per company. To date, Kimmel has backed three companies with capital from the fund: Tandem, Dover and Command E. The first, Tandem, was amongst the most coveted deals in Y Combinator’s latest batch of companies. The startup graduated from the accelerator with millions from Andreessen Horowitz at a valuation north of $30 million.

Dover, another recent YC alum, provides recruitment software and is said to be backed by Founders Fund in addition to Work Life. Command E, currently in beta, is a tool that facilities search across multiple desktop applications. Kimmel is also an angel investor in Webflow, Girlboss, TechCrunch Disrupt 2018 Startup Battlefield winner Forethought, Voyage and others.

Work Life is betting on the consumerization of the enterprise, or the idea that the next best companies for modern workers will be consumer-friendly tools. In her pitch deck to LPs, she cites the success of Superhuman and Notion, a well-designed email tool and a note-taking app, respectively, as examples of the heightened demand for digestible, easy-to-use B2B products.

“The next generation of applications for the workplace sees people spinning out of Uber, Coinbase and Airbnb,” Kimmel said. “They’ve faced these challenges inside their highly efficient tech company so we are seeing more consumer product builders deeply passionate about the enterprise space.”

But Kimmel doesn’t want to bury her thesis in jargon, she says, so you won’t find any B2B lingo on Work Life’s website or Instagram.

She’s focusing her efforts on a more important issue often vacant from conversations surrounding investment in the future of work: diversity & inclusion.

Kimmel meets with every new female hire of her portfolio companies. Though it’s “increasingly non-scalable,” she admits, it’s part of a greater effort to ensure her companies are thoughtful about D&I from the beginning: “Because I have a very focused fund, it’s about maintaining this community and ensuring that people feel like their voices are heard,” she said.

“I want to be mindful that I am a female GP and I feel [proud] to have that title.”

Aug
28
2019
--

ReadMe scores $9M Series A to help firms customize API docs

Software APIs help different tools communicate with one another, let developers access essential services without having to code it themselves and are critical components for driving a platform-driven strategy. Yet they require solid documentation to help make the best use of them. ReadMe, a startup that helps companies customize their API documentation, announced a $9 million Series A today led by Accel with help from Y Combinator. The company was part of the Y Combinator Winter 2015 cohort.

Prior to today’s funding announcement, the company had taken just a $1.2 million seed round in 2014. Today, it reports 3,000 paying customers and that it has been profitable for the last several years, an unusual position for a startup. In spite of this success, co-founder and CEO Gregory Koberger said as the company has taken on larger customers, they have more sophisticated requirements, and that prompted them to take this round of funding.

In addition, it has expanded the platform to use a company’s API logs to help create more dynamic documentation and improve customer support kinds of scenarios. But by taking on data from other companies, it needs to make sure the data is secure, and today’s funding will help in that regard.

“We’re going to still build the company traditionally by hiring more engineers, more support people, more designers, the obvious stuff, but the main impetus for doing this was that we started working with bigger companies with more secure data. So a lot of the money is going to help make sure that we handle that right,” Koberger explained.

Screenshot 2019 08 28 10.55.38

Image: ReadMe

He says this ability to make use of the API logs has opened up all kinds of possibilities for the company, as the data provides a valuable window into how people use the APIs. “It’s amazing how much you get by just actually seeing what the server sees. When people are having problems with an API, they can debug it themselves because they can actually see the problems, the support team can see it as well,” Koberger said.

Accel’s Dan Levine, whose firm is leading the investment, believes that having good documentation is the difference between making and breaking an API. “APIs don’t just create technical integration, they create ecosystems around core services and underpin corporate partnerships that generate billions of dollars. ReadMe is as much a strategy as it is a service for businesses. Providing clean, interactive, data-driven API documentation to make developers love working with you can be the difference between 100 partnerships or 1,000 partnerships,” Levine said.

ReadMe was founded in 2014. It has 22 employees in their San Francisco office, a number that should increase with today’s funding.

Jun
20
2019
--

Machine learning for everyone startup Intersect Labs launches platform for data analysis

Machine learning is the holy grail of data analysis, but unfortunately, that holy grail oftentimes requires a PhD in Computer Science just to get started. Despite the incredible attention that machine learning and artificial intelligence get from the press, the reality is that there is a massive gap between the needs of companies to solve business challenges and the availability of talent for building incisive models.

YC-backed Intersect Labs is looking to solve that gap by making machine learning much more widely accessible to the business analyst community. Through its platform, which is being launched fully publicly, business analysts can upload their data, and Intersect will automatically identify the right machine learning models to apply to the dataset and optimize the parameters of those models.

The company was founded by Ankit Gordhandas and Aaron Fried in August of last year. In his previous job, Gordhandas deployed machine learning models to customers and started working on a tool that would speed up his work. “I actually realized I could build a version of the tool that was a little more advanced,” he said, and that work ultimately led to the foundation of Intersect Labs. He linked up with Fried in October, and the two have been working on the platform since.

Intersect’s goal is to move analysts from purely retrospective analysis to creating models that can predictively determine business strategy. “People who live in SQL and Excel, they are really good at pulling the data of the past, but we are giving them the superpower of seeing the future,” Gordhandas explained. “All you need is your historical data, upload to our platform, and answer two questions.”

Ankit Gordhandas and Aaron Fried of Intersect Labs. Courtesy of Intersect Labs.

Those questions essentially ask what the model should predict (the outcome variable). From there, Intersect begins by cleaning up the data and ensuring that the various columns are properly scaled for data analysis. Then, the platform begins constructing a range of machine learning models and evaluating their performance against the target output. Once an ideal model is identified, customers can integrate it into their other systems through a REST-style API.

What’s interesting here is that Intersect can get better and better at identifying models over time based on the increasing diversity of datasets that it gets access to. Plus, as researchers identify new models or ways to tune them, the platform can potentially proactively improve the models it had previously identified for its customers, ensuring that they stay at the cutting edge of the field.

Today, the platform can handle one table of standard rows and columns for processing. Gordhandas said that the company intends to expand in the future to “image processing, audio processing, video processing, unstructured data processing” so that the platform can be applied to as diverse a set of data sources as possible

Gordhandas says that Intersect is attempting to sit in the middle of more specialized machine learning platforms that are limited to hyper-focused niches, while also offering more analytical power than comparably simpler solutions.

Certainly the space has seen a proliferation of options. New York City-based Generable (formerly Stan) uses Bayesian modeling and probabilistic programming to improve drug discovery, while Mintigo uses AI modeling to improve customer engagement. A huge number of other startups target different stages of the data analysis pipeline as well.

In the end, Intersect hopes to make these tools more widely accessible. The company has a couple of early customers already, and is going through the Y Combinator accelerator this batch.

May
21
2019
--

FlareAgent, a platform that automates real estate transactions, launches out of YC

The real estate industry is experiencing a bit of a rejuvenation. After years resisting the influence of tech, the industry is now feeling the entrance of e-buyers, as well as a variety of software to streamline the process. One such tech company looking to infiltrate real estate is FlareAgent, which launches today out of Y Combinator.

FlareAgent was founded by Abhi CVK and Rashid Aziz. The duo, who just graduated out of NYU, first built FlareAgent when Rashid’s dad, a real estate agent, was asked by his boss (Mr. Brown) about finding software that might speed up the process of completing a transaction.

Abhi and Rashid built something that ended up helping grow the real estate firm from 20 deals per month to more than 100 deals/month. How?

FlareAgent lets all parties collaborate on a transaction from the comfort of their own home or office. From purchase offers to escrow documents to the closing agreement, FlareAgent allows brokers and clients to view and interact with various documents to speed up the time to close.

This used to be done manually by brokers, who’d have to fax or mail or hand-deliver documents to and from various parties in the transaction. If changes take place to the paperwork, this process may start over from scratch.

With FlareAgent, all the time spent changing and sharing documents manually can be done online.

To be clear, a transaction doesn’t actually go through FlareAgent. In other words, the money changing hands from buyer to seller doesn’t flow through the FlareAgent platform. But all the documents that need to be reviewed, amended and signed can be handled on FlareAgent.

To make money, the company charges a monthly subscription to brokers using the platform.

Thus far, FlareAgent says it has around 100 active agents on the platform and has processed more than 2,500 transactions (worth $550 million in property value) since its inception.

May
16
2019
--

Unveiling its latest cohort, Alchemist announces $4 million in funding for its enterprise accelerator

The enterprise software and services-focused accelerator Alchemist has raised $4 million in fresh financing from investors BASF and the Qatar Development Bank, just in time for its latest demo day unveiling 20 new companies.

Qatar and BASF join previous investors, including the venture firms Mayfield, Khosla Ventures, Foundation Capital, DFJ and USVP, and corporate investors like Cisco, Siemens and Juniper Networks.

While the roster of successes from Alchemist’s fund isn’t as lengthy as Y Combinator, the accelerator program has launched the likes of the quantum computing upstart Rigetti, the soft-launch developer tool LaunchDarkly and drone startup Matternet .

Some (personal) highlights of the latest cohort include:

  • Bayware: Helmed by a former head of software-defined networking from Cisco, the company is pitching a tool that makes creating networks in multi-cloud environments as easy as copying and pasting.
  • MotorCortex.AI: Co-founded by a Stanford engineering professor and a Carnegie Mellon roboticist, the company is using computer vision, machine learning and robotics to create a fruit packer for packaging lines. Starting with avocados, the company is aiming to tackle the entire packaging side of pick and pack in logistics.
  • Resilio: With claims of a 96% effectiveness rate and $35,000 in annual recurring revenue with another $1 million in the pipeline, Resilio is already seeing companies embrace its mobile app that uses a phone’s camera to track stress levels and application-based prompts on how to lower it, according to Alchemist.
  • Operant Networks: It’s a long-held belief (of mine) that if computing networks are already irrevocably compromised, the best thing that companies and individuals can do is just encrypt the hell out of their data. Apparently Operant agrees with me. The company is claiming 50% time savings with this approach, and have booked $1.9 million in 2019 as proof, according to Alchemist.
  • HPC Hub: HPC Hub wants to democratize access to supercomputers by overlaying a virtualization layer and pre-installed software on underutilized super computers to give more companies and researchers easier access to machines… and they’ve booked $92,000 worth of annual recurring revenue.
  • DinoPlusAI: This chip developer is designing a low latency chip for artificial intelligence applications, reducing latency by 12 times over a competing Nvidia chip, according to the company. DinoPlusAI sees applications for its tech in things like real-time AI markets and autonomous driving. Its team is led by a designer from Cadence and Broadcom and the company already has $8 million in letters of intent signed, according to Alchemist.
  • Aero Systems West: Co-founders from the Air Force’s Research Labs and MIT are aiming to take humans out of drone operations and maintenance. The company contends that for every hour of flight time, drones require seven hours of maintenance and check ups. Aero Systems aims to reduce that by using remote analytics, self-inspection, autonomous deployment and automated maintenance to take humans out of the drone business.

Watch a live stream of Alchemist’s demo day pitches, starting at 3PM, here.

 

Mar
27
2019
--

Proxy raises $13.6M to unlock anything with Bluetooth identity

You know how kings used to have trumpeters heralding their arrival wherever they went? Proxy wants to do that with Bluetooth. The startup lets you instantly unlock office doors and reserve meeting rooms using Bluetooth Low Energy signal. You never even have to pull out your phone or open an app. But Proxy is gearing up to build an entire Bluetooth identity layer for the world that could invisibly hover around its users. That could allow devices around the workplace and beyond to instantly recognize your credentials and preferences to sign you into teleconferences, pay for public transit or ask the barista for your usual.

Today, Proxy emerges from stealth after piloting its keyless, badgeless office entry tech with 50 companies. It’s raised a $13.6 million Series A round led by Kleiner Perkins to turn your phone into your skeleton key. “The door is a forcing function to solve all the hard problems — everything from safety to reliability to the experience to privacy,” says Proxy co-founder and CEO Denis Mars. “If you’re gonna do this, it’s gonna have to work right, and especially if you’re going to do this in the workplace with enterprises where there’s no room to fix it.”

But rather than creepily trying to capitalize on your data, Proxy believes you should own and control it. Each interaction is powered by an encrypted one-time token so you’re not just beaming your unprotected information out into the universe. “I’ve been really worried about how the internet world spills over to the physical world. Cookies are everywhere with no control. What’s the future going to be like? Are we going to be tracked everywhere or is there a better way?” He figured the best path to the destiny he wanted was to build it himself.

Mars and his co-founder Simon Ratner, both Australian, have been best buddies for 10 years. Ratner co-founded a video annotation startup called Omnisio that was acquired by YouTube, while Mars co-founded teleconferencing company Bitplay, which was bought by Jive Software. Ratner ended up joining Jive where the pair began plotting a new startup. “We asked ourselves what we wanted to do with the next 10 or 20 years of our lives. We both had kids and it changed our perspective. What’s meaningful that’s worth working on for a long time?”

They decided to fix a real problem while also addressing their privacy concerns. As he experimented with Internet of Things devices, Mars found every fridge and light bulb wanted you to download an app, set up a profile, enter your password and then hit a button to make something happen. He became convinced this couldn’t scale and we’d need a hands-free way to tell computers who we are. The idea for Proxy emerged. Mars wanted to know, “Can we create this universal signal that anything can pick up?”

Most offices already have infrastructure for badge-based RFID entry. The problem is that employees often forget their badges, waste time fumbling to scan them and don’t get additional value from the system elsewhere.

So rather than re-invent the wheel, Proxy integrates with existing access control systems at offices. It just replaces your cards with an app authorized to constantly emit a Bluetooth Low Energy signal with an encrypted identifier of your identity. The signal is picked up by readers that fit onto the existing fixtures. Employees can then just walk up to a door with their phone within about six feet of the sensor and the door pops open. Meanwhile, their bosses can define who can go where using the same software as before, but the user still owns their credentials.

“Data is valuable, but how does the end user benefit? How do we change all that value being stuck with these big tech companies and instead give it to the user?” Mars asks. “We need to make privacy a thing that’s not exploited.”

Mars believes now’s the time for Proxy because phone battery life is finally getting good enough that people aren’t constantly worried about running out of juice. Proxy’s Bluetooth Low Energy signal doesn’t suck up much, and geofencing can wake up the app in case it shuts down while on a long stint away from the office. Proxy has even considered putting inductive charging into its sensors so you could top up until your phone turns back on and you can unlock the door.

Opening office doors isn’t super exciting, though. What comes next is. Proxy is polishing its features that auto-reserve conference rooms when you walk inside, that sign you into your teleconferencing system when you approach the screen and that personalize workstations when you arrive. It’s also working on better office guest check-in to eliminate the annoying iPad sign-in process in the lobby. Next, Mars is eyeing “Your car, your home, all your devices. All these things are going to ask ‘can I sense you and do something useful for you?’ ”

After demoing at Y Combinator, thousands of companies reached out to Proxy, from hotel chains to corporate conglomerates to theme parks. Proxy charges for its hardware, plus a monthly subscription fee per reader. Employees are eager to ditch their keycards, so Proxy sees 90 percent adoption across all its deployments. Customers only churn if something breaks, and it hasn’t lost a customer in two years, Mars claims.

The status quo of keycards, competitors like Openpath and long-standing incumbents all typically only handle doors, while Proxy wants to build an omni-device identity system. Now Proxy has the cash to challenge them, thanks to the $13.6 million from Kleiner, Y Combinator, Coatue Management and strategic investor WeWork. In fact, Proxy now counts WeWork’s headquarters and Dropbox as clients. “With Proxywe can give our employees, contractors and visitors a seamless smartphone-enabled access experience they love, while actually bolstering security,” says Christopher Bauer, Dropbox’s physical security systems architect.

The cash will help answer the question of “How do we turn this into a protocol so we don’t have to build the other side for everyone?,” Mars explains. Proxy will build out SDKs that can be integrated into any device, like a smoke detector that could recognize which people are in the vicinity and report that to first responders. Mars thinks hotel rooms that learn your climate, wake-up call and housekeeping preferences would be a no-brainer. Amazon Go-style autonomous retail could also benefit from the tech.

When asked what keeps him up at night, Mars concludes that “the biggest thing that scares me is that this requires us to be the most trustworthy company on the planet. There is no ‘move fast, break things’ here. It’s ‘move fast, do it right, don’t screw it up.’ “

Mar
27
2019
--

Goodly replaces lame office perks with student loan repayment

There are better employee perks than a ping-pong table. Seventy percent of Americans graduate college with student loan debt. That’s 45 million people who owe $1.6 trillion. So when employers use Goodly to offer $100 per month in student loan payback for a $6 fee, talent sticks around. The startup found 86 percent of employees said they’d stay with a company for at least five years if their employer helped pay down their student loans. Yet employers break even if workers stay just two extra months, and get a 5X return if they stay an extra year because it costs so much to hire and train replacement staff.

Now, Y Combinator-backed Goodly has raised a $1.3 million seed round led by Norwest. The startup hopes to capitalize on corporate America waking up to student loan payback as a benefit, which is expected to grow from being offered by 4 percent of companies today to 32 percent by 2021.

Goodly co-founder and CEO Greg Poulin knows the student loan crisis personally. “When I was in school, my father passed away very unexpectedly due to a heart attack. I had to borrow $80,000 for college at Dartmouth,” he tells me. His monthly payment is now $900. The stress that debt creates can poison the rest of your life. He says 21 percent of employees with student loan debt have delayed marriage, 28 percent have put off starting a family and 1 out of 8 divorces is now directly attributed to student loan debt. “I’ve seen first-hand how challenging it is for employees to save for retirement or start a family” when they’re strapped with debt, Poulin says.

He met his co-founder and CTO Hemant Verma when they started working at Zenefits’ founder Parker Conrad’s new employee onboarding startup, Rippling, in 2017. That taught them how simplifying the benefits sign-up process could become its own business. Typically it requires that benefits be integrated with a company’s financial software, like payroll, and be set up with proper provisioning access. It’s enough of a chore that companies don’t go to the trouble of offering student loan repayment.

Poulin and Verma started Goodly to create a “set it and forget it” system that automates everything. They charge $6 per month per participating employee and typically see adoption by 30 percent to 40 percent of employees. Rather than help with their monthly payment that includes interest, Goodly clients pay down their employees’ core debt so they can escape more quickly. Employees get a dashboard where they can track their debt and all of the contributions their company has made. Goodly hasn’t had a single customer churn since launch, demonstrating how badly employers want to keep job-hopping talent in their roles.

“We found that our people put off contributing to their 401ks and buying a house because of their student loan debt. We thought that offering a Student Loan Repayment Benefit would be a great low-cost and high-impact benefit to attract and retain talent while alleviating some of the stress and the financial burden on our employees,” says Kim Alessi, an HR generalist.

Goodly’s founders and first employees

The business opportunity here is relatively young, but there are a few competitors. Boston-based Gratify was acquired by First Republic, which Santa Monica’s Tuition.io pivoted to offering student loan benefits. But Goodly’s connection to so many potential clients plus its new funding could help it make student loan repayment a ubiquitous perk. Along with Norwest and YC, the funding comes from ACE & Company, Arab Angel, Zeno Ventures and angel investors, including Optimizely’s Pete Koomen, DreamHost’s Josh Jones, ShipStation’s Jason Hodges, Fairy’s Avlok Kohli and Telly’s Mo Al Adham.

Beyond improving talent retention, Goodly may also help erase some of the systematic discrimination against minorities in our country. Women hold 66 percent of all student loan debt, black and Latinx Americans have 31 percent more student debt than their peers and LGBTQ borrowers owe $16,000 more than an average member of the population. Convincing employers to address student loan debt could give everyone more freedom of choice when it comes to what they work on and how they live their lives.

Powered by WordPress | Theme: Aeros 2.0 by TheBuckmaker.com