Insurtech Hourly expanded Series A financing from raised $27 million to $32 million led by Glilot Capital Partners through its early growth fund, Glilot+. Additional backers include previous investors S Capital, MS&AD Ventures, J-Ventures, Vintage Investment Partners, Upshot Ventures and Sienna Investment Managers.
Headquartered in Palo Alto, California, Hourly.io is an insurtech startup offering full-service payroll and workers’ comp insurance for small and medium businesses with hourly workers. Powered by real-time data, Hourly’s platform ensures running payroll is as quick as pressing a button and that you get accurate workers’ comp premiums down to the penny.
The Series A funding will help Hourly expand beyond the state of California, where it was founded. The company aims to scale its insurance platform nationwide.
Sienna Investment Managers, the alternative investment platform from Groupe Bruxelles Lambert (GBL) and one of Europe’s leading investment companies, announced a $5 million investment through the company’s newly created Sienna Venture Capital team to Hourly, a fast-growing workers’ comp and payroll startup. This brings Hourly’s Series A to $32M.
With offices in Luxembourg, London, Paris, Hamburg, Madrid, Amsterdam, and Seoul, Sienna IM has extensive experience in asset management. They invest across a range of asset classes to fund technologies, businesses, and infrastructure on behalf of third parties. They oversee more than €32 billion for GBL and institutional clients. They do this through real estate assets, private and public market fund investments, and direct equity investments in unlisted companies.
Without question, Hourly has already proved itself to be a robust contender disrupting the payroll and workers’ compensation markets and a very attractive first investment.Isabelle Amiel-Azoulai, Founding Partner at Sienna VC
Hourly’s user-friendly platform fuses three complicated products—time and attendance, payroll, and workers’ comp insurance—into one.
Traditionally, businesses use annual payroll estimates to calculate workers’ comp premiums. But changes in staffing, workload, hours or pay often cause those estimates to vary significantly from reality. As a result, businesses overpay or underpay their workers’ comp premiums, often by tens of thousands of dollars.
Established in 2018, Hourly offers a full-service platform that connects workers’ comp, time tracking, and payroll in real-time for small and medium-sized business owners with hourly workers.
This innovation uses real-time data to calculate workers’ comp premiums–which typically are based on payroll estimates. With Hourly, premiums are always accurate.
That way, businesses pay only for the coverage they need, rather than overpaying or underpaying–and getting saddled with a huge bill come audit time.
Co-founder and CEO Tom Sagi experienced those problems firsthand when he ran a small business himself. He partnered with Shay Litvak, a technologist with over 20 years of experience, to solve these problems and revolutionize the $50 billion workers’ comp industry.
Hourly is a game-changer for small businesses with a mobile workforce. The platform frees up thousands of hours spent on administrative work, eliminates surprise bills, and ultimately improves accountability.Lior Litwak, Managing Partner of Glilot+
“We are thrilled to join Hourly on its journey to completely revamp the workers’ comp insurance sector.”
Haim Sadger, a Founding Partner of S Capital who led Hourly’s seed round in 2019 and is the second largest investor in the Series A, commented, “Hourly is a shining example of what can be done when talented people come together with a clear vision. That vision is to create a platform that lets any business owner manage all aspects of their hourly workforce in a matter of minutes using just a smartphone. They’ve built something really special, and the growth and positive feedback they’re seeing from the market are testaments to that.”
Hourly completely eliminates uncertainty because payroll and workers’ comp are connected. Now companies know exactly how much their coverage costsHaim Sadger, a Founding Partner of S Capital
“We’re thrilled to expand Hourly out of California and give business owners across America a better way to pay their team, get a handle on their true labor costs, and better manage their workers’ comp insurance.”