Promise, a San Francisco-based startup that aims to provide better employee benefits to workers, has announced it has raised $20 million in a Series A funding round led by KPCB Edge, with participation from First Round Capital, Khosla Ventures, and Y Combinator.
The company was founded in 2018 by Dave Girouard, who previously led Google’s enterprise division, and Phaedra Ellis-Lamkins, a social justice advocate and former CEO of non-profit Green For All. Promise’s mission is to improve access to essential services for employees, such as childcare, transportation, and healthcare, in order to support the overall well-being of workers and increase employee retention for businesses.
Promise’s platform offers a range of services to employers, including a “promised services” program that provides employees with access to benefits such as transportation, childcare, and financial counseling. The company also offers a “promised pay” program, which allows workers to access their earned wages before their next paycheck, avoiding costly overdraft fees or payday loans.
In addition to its platform, Promise works with employers to design and implement benefits programs that meet the specific needs of their workforce. The company uses data analytics and employee surveys to identify the most pressing needs of a given workforce, and works with employers to provide tailored benefits that address those needs.
The $20 million in Series A funding will be used to expand Promise’s platform and services, as well as to build out the company’s sales and marketing efforts. Girouard stated that the funding will allow Promise to “help even more employers offer better benefits, and to support even more workers in accessing the essential services they need.”
Promise has already made significant progress in its mission. The company has partnered with several employers, including the City of Stockton, California, to provide benefits to their workforce. Promise has also received recognition for its efforts, winning the “Innovations in Healthcare” award at the 2019 Forbes Impact Summit.
Promise’s model has the potential to make a significant impact on the workforce. According to a survey conducted by the Federal Reserve, 40% of Americans would be unable to cover an unexpected expense of $400 without going into debt or selling something. In addition, studies have shown that access to benefits such as childcare and transportation can greatly improve employee retention and productivity.
However, Promise’s model is not without its challenges. The company must work closely with employers to identify the specific needs of their workforce, and develop benefits programs that are both effective and financially viable. In addition, Promise faces competition from established benefits providers, as well as from other startups with similar missions.
Overall, Promise’s Series A funding is a significant step forward for the company and its mission to provide better employee benefits. The company’s innovative approach has the potential to make a real impact on the lives of workers, and could lead to greater employee retention and productivity for businesses. As Promise continues to grow and expand, it will be interesting to see how the company adapts to the challenges of the market and continues to make progress towards its mission factnewsph.