PALO ALTO, Calif. — Hourly.io, a workers’ comp and payroll startup, announced it has raised $27 million in Series A financing led by Glilot Capital Partners through its early growth fund, Glilot+. Additional backers include previous investors S Capital, MS&AD Ventures, J-Ventures and new to this round, Vintage Investment Partners and Upshot Ventures.
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.
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.
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 completely eliminates uncertainty because payroll and workers’ comp are connected. Now companies know exactly how much their coverage costs,” said Sagi. “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.”