Total amount raised
$20 Million
Latest funding date
2/1/2022
Location
Sparrow has successfully raised $35 million in a Series B funding round, marking a significant milestone in its financial journey. The platform offers comprehensive employee leave management solutions, integrating with various systems to ensure seamless compliance and efficiency.
Keep reading to explore the intricacies of Sparrow's fundraising journey and the investors backing this innovative platform.
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?
- Series A
- Amount Raised: USD 20,000,000
- Date: February 2022
- Lead Investors: WndrCo, 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 Unknown
- Date: November 2021
- Lead Investors: SHAKTI
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support the company's growth and expansion efforts.
- Series A
- Date: February 2021
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance the company's product offerings and expand its market reach.
- Series B
- Amount Raised: USD 35,000,000
- Date: July 2025
- Lead Investors: SLW
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and expand its market presence.
Total Amount Raised: USD 55,000,000. Current Valuation: Not publicly disclosed.
Key Investors
- SLW
- Details: SLW is a prominent venture capital firm known for its strategic investments in technology startups. They led Sparrow's Series B funding round.
- Investment Focus Areas: Technology, SaaS, Human Resources.
- Notable Investments: Not publicly disclosed.
- WndrCo
- Details: WndrCo is a venture capital firm that focuses on investing in innovative technology companies. They led Sparrow's Series A funding round in 2022.
- Investment Focus Areas: Technology, Media, Consumer Internet.
- Notable Investments: Not publicly disclosed.
- SHAKTI
- Details: SHAKTI is an investment firm that supports early-stage startups with high growth potential. They participated in Sparrow's Series Unknown funding round 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 capital firm that supports innovative technology startups. They also 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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