(Image source: Hourly homepage.)
Hourly (Palo Alto, Calif.), an InsurTech startup offering full-service payroll and workers’ comp insurance for small and medium businesses with hourly workers, has announced that it has raised $27 million in a Series A round led by Gliot Capital Partners (Herzliya Pituach, Israel). Existing investors also participated, including S Capital, MS&AD Ventures, J-Ventures, as well as new investors Vintage Investment Partners and Upshot, plus what the company characterizes as a large number of angel investors.
Hourly reports that it plans to use the new funding to extend its offering beyond California and make it available to one-third of the U.S. population by the end of 2023. “We are a growing company that’s solving the exact problem I had for years in my construction business,” comments Tom Sagi, Co-founder & CEO, Hourly. “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.
The company aims to make the workers’ compensation insurance purchasing process easier for small businesses, especially those with higher-risk jobs. Premiums for such businesses are based on annual payroll estimates, and for a business with hourly employees, changes in staff, hours, and pay make it nearly impossible to accurately estimate payroll, according to an Hourly statement. As a result, many businesses over or underpay their premiums, often by tens of thousands of dollars.
Building Additional Features
Hourly addresses the historical difficulties faced by small businesses managing workers’ comp through what it calls the first platform that lets employers run payroll, track time and attendance, and manage workers’ comp insurance premiums in one place. Hourly says this addresses historic difficulties because by directly linking payroll and workers’ comp, premiums are based on a company’s actual payroll–not a guess. “Since we have a pay-as-you-go model, business owners only pay for the coverage they use every pay period,” the statement elaborates. Hourly says that it plans to enhance its platform further buy building in features that allow business owners to get more affordable coverage, file claims easily, run safety programs, and more.