Total amount raised
$64M
Latest funding date
2025-07-29
Location
Sparrow has raised $64 million in total funding, including a $35 million Series B round announced on July 29, 2025. The platform offers comprehensive AI-powered employee leave management solutions, integrating with various systems to ensure seamless compliance and efficiency.
What Is Sparrow?
Sparrow is an HR technology firm based in San Francisco, California, specializing in employee leave management solutions. The company operates in various industries, including Employee Benefits, Human Resources, Productivity Tools, SaaS, and Software.
With a team of 101-250 employees, Sparrow offers comprehensive services to automate and streamline the leave management process, ensuring compliance with federal, state, and local regulations. Their solutions are trusted by over 1,000 companies, helping them save significant amounts in payroll costs.
How Much Funding Has Sparrow Raised?
- Seed Rounds
- Amount Raised: Undisclosed
- Date: 2021
- Lead Investors: SHAKTI (Shakti VC)
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support early-stage company growth and initial product development.
- Series A
- Amount Raised: USD 20,000,000
- Date: February 2022
- Lead Investors: WndrCo
- Participants: Authentic Ventures, South Park Commons
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate sales, marketing, and product development activities in North America, and to scale the team by hiring for several key positions.
- Series B
- Amount Raised: USD 35,000,000
- Date: July 29, 2025
- Lead Investors: SLW (Silver Lake Waterman)
- Participants: WndrCo (existing investor)
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale global AI-powered leave management solutions, further develop the platform, and expand market presence.
Total Amount Raised: at least USD 55,000,000 based on disclosed funding ($20M Series A + $35M Series B); total reported by company as $64M including undisclosed seed rounds. Current Valuation: Not publicly disclosed.
Key Investors
- SLW (Silver Lake Waterman)
- Details: SLW (formerly Silver Lake Waterman, founded 2012, became independent in 2024) led Sparrow's Series B funding round in July 2025. Matt Walsh, Managing Director at SLW, represented the firm.
- Investment Focus Areas: Technology, SaaS, Growth-stage companies.
- Notable Investments: Not publicly disclosed.
- WndrCo
- Details: WndrCo is an investment company headed by Jeffrey Katzenberg, co-founder of DreamWorks and former chairman of The Walt Disney Studios. They led Sparrow's Series A funding round in February 2022 and participated in the Series B.
- Investment Focus Areas: Technology, Media, Consumer Internet.
- Notable Investments: Not publicly disclosed.
- SHAKTI (Shakti VC)
- Details: SHAKTI is an early-stage investment fund that supported Sparrow with seed funding in 2021.
- Investment Focus Areas: Early-stage startups, Technology, Innovation.
- Notable Investments: Not publicly disclosed.
- Authentic Ventures
- Details: Authentic Ventures is a venture capital firm that invests in diverse and underrepresented founders. They participated in Sparrow's Series A funding round in 2022.
- Investment Focus Areas: Diversity, Technology, Early-stage startups.
- Notable Investments: Not publicly disclosed.
- South Park Commons
- Details: South Park Commons is a community-driven venture firm that supports innovative technology startups. They participated in Sparrow's Series A funding round in 2022.
- Investment Focus Areas: Technology, Community-driven startups, Innovation.
- Notable Investments: Not publicly disclosed.
What's Next for Sparrow?
With $20 million in Series A funding, Sparrow is poised to expand its services in employee leave management, a sector gaining traction due to increasing compliance needs and employee wellness focus. This funding will enable Sparrow to accelerate sales, marketing, and product development activities in North America, positioning them to capture a larger market share.
Future fundraising opportunities seem promising as the company continues to grow. The successful Series A round suggests potential for additional funding rounds, which could further bolster their market presence. However, Sparrow may face challenges such as managing rapid growth, staying ahead of compliance regulations, and competing with other providers in the market.
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