Choosing employer benefits can seem like a chore, as time-consuming as filling out forms in a doctor’s office. This is especially true for employees of small businesses who do not have access to the HR technology platforms powering businesses. David Reid, Co-Founder and CEO of HR Software Facilitate, is on a mission to change that.
“[Small businesses and doctor’s offices] are the only two places where someone will give you 10 forms and ask you to fill in your name and address over and over again, ”he says. “We are solving this problem.”
Reid launched Facilitate alongside CTO Courtney Guertin in 2015 to help small businesses manage benefits and onboard new hires as easily as large businesses, while removing complicated insurance red tape. On Thursday, the San Francisco-based startup announced a $ 41 million Series C funding round led by Spectrum Equity, bringing its total funding to $ 70 million.
While the platform is designed for small businesses, Ease sells to insurance brokers, who then onboard, manage, and teach their small business clients how to use the software. When nearly 40% of the US workforce is employed by a small or medium-sized business (or a company with fewer than 500 employees), the market for Ease’s product is significant, says Vic Parker, CEO of Spectrum Equity.
“The solutions that are in the under 50s [employee] space are bundled solutions today, where you get a payroll option, a benefits option or limited benefits options. The options that let you choose anything are only for large companies, typically over 500 employees, ”says Reid. “This is the space that we are trying to serve. We want to bring the exceptional benefits that a big business gives to a small business. “
Ease charges brokers a monthly fee for offering its software, which starts at $ 379 per month. Small businesses can use it to onboard new employees, manage payroll, and choose benefits, while employees can access their virtual dental and medical ID cards through the Ease app on their smartphones, rather than online. ‘have physical copies in their wallet. Brokers can then choose additional tools, such as time off tracking, company directories, and integrations with payroll partners, including ADP and Paylocity, for a fee.
Since the start of the Covid-19 pandemic, forcing employers across the country to switch to remote work, Ease has seen its users increase by 70% to reach over 75,000 employers with 2.5 million employees, as well as over 2,000 insurance agencies and 20 insurance companies. , including Allstate and Humana.
“When you deal with small businesses, they usually send out paper forms … At the end of the day, insurance companies print them out and manually enter all of those entries,” says Reid. “So the advantage we offer is a high level of efficiency which reduces their operating costs. It also increases the quality of the user experience as registrations occur much faster. “
With the new funding, Reid says he plans to increase the number of insurance companies the startup works with, as well as its team of 200 people.
Propel Venture Partners founder Ryan Gilbert, whose company led Ease’s 2017 Series A and participated in its Series C, says the firm’s focus on strengthening relationships between employers and employees , and employers and their advisers or brokers, is what makes it unique. Other human resources and integration platforms, such as Deel and Remote, only market the former.
“Ease started at a time when a lot of companies were starting to say, ‘We’re going to create digital brokers,’” he says. “Ease went into the market saying, ‘We’re going to help brokers be more successful through the smart use of technology that will help them and their clients, employers and employees be more successful.’ “