Total amount raised
$34.7 Millions
Latest funding date
01/01/2024
Location
Benepass has successfully raised $20 million in its latest Series B funding round, attracting investment from 16 investors, including Gradient and Workday Ventures. The platform offers a comprehensive suite of flexible benefits designed to meet the diverse needs of modern, people-first companies.
Keep reading to explore the intricacies of Benepass's fundraising journey and the investors backing this innovative platform.
What Is Benepass?
Benepass, founded on September 1, 2019, is a New York-based company specializing in employee benefits, enterprise software, fintech, and human resources. The company was established by Jaclyn Chen, Kabir Soorya, and Mark Fischer.
With a team of 51-100 employees, Benepass offers a flexible benefits platform that helps companies manage and distribute employee perks globally. Their services include pre-tax benefits, employer-funded programs, and lifestyle spending accounts, all designed to enhance employee engagement and satisfaction.
How Much Funding Has Benepass Raised?
- Pre-Seed Round
- Amount Raised: $150K
- Date: March 2020
- Lead Investors: Y Combinator
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To establish the initial foundation and develop the core platform.
- Seed Round
- Amount Raised: $2.5M
- Date: April 2020
- Lead Investors: Gradient
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and accelerate product development.
- Series A
- Amount Raised: $12M
- Date: September 2021
- Lead Investors: Threshold
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and enhance the platform's features.
- Series B
- Amount Raised: $20M
- Date: January 2024
- Lead Investors: Portage Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand distribution, build new features, and leverage AI for insights.
Total Amount Raised: $34.65M. Current Valuation: Not publicly disclosed.
Key Investors
- Portage Ventures
- Details: Portage Ventures is a venture capital firm that focuses on investing in entrepreneurs reshaping financial services. Stephanie Choo, a Partner at Portage, has joined the Benepass Board of Directors.
- Investment Focus Areas: Financial services.
- Notable Investments: Not publicly disclosed.
- Threshold Ventures
- Details: Threshold Ventures is a venture capital firm that has been an existing investor in Benepass. They focus on early-stage investments in technology companies.
- Investment Focus Areas: Technology.
- Notable Investments: Not publicly disclosed.
- Gradient Ventures
- Details: Gradient Ventures is a venture capital firm that invests in early-stage AI companies. They are an existing investor in Benepass.
- Investment Focus Areas: Artificial intelligence, technology.
- Notable Investments: Not publicly disclosed.
- Workday Ventures
- Details: Workday Ventures is the strategic investment arm of Workday, focusing on companies shaping the next generation of enterprise technology. Barbry McGann, SVP and Managing Director, provided a quote supporting Benepass.
- Investment Focus Areas: Enterprise technology.
- Notable Investments: Not publicly disclosed.
- Clocktower Technology Ventures
- Details: Clocktower Technology Ventures is a venture capital firm that participated in the recent funding round for Benepass. They focus on investing in financial technology companies.
- Investment Focus Areas: Financial technology.
- Notable Investments: Not publicly disclosed.
What's Next for Benepass?
Benepass is poised to capitalize on significant opportunities in the benefits space. With $20 million in new funding, the company plans to expand its distribution and technical partnerships, build innovative features, and leverage AI for deeper insights into employee benefits behavior. This expansion aligns with industry trends of consolidating benefits vendors to control costs and increasing interest in flexible, personalized benefits platforms.
Future fundraising opportunities seem promising as Benepass continues to grow and attract strategic investments. The company's ability to scale and innovate could make it an attractive target for further investment or acquisition. However, challenges such as navigating complex benefits design, maintaining high client support, and competing with other platforms remain. Successfully addressing these challenges will be crucial for Benepass's sustained growth and market leadership.
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