Hourly Raises $7.15M Seed Round to Bring Workers’ Comp, Payroll and Time Tracking Into the 21st Century

Hourly, a Palo Alto-based Fintech and Insurtech startup that launched the only mobile-first “real simple” workers’ comp, payroll and time tracking platform purpose-built for small businesses earlier this year, today announced it has raised $7.15 million in seed round funding. The raised capital will be used to expand rapidly into new markets.

The round was led by Aya Peterburg and Haim Sadger of S Capital, with participation from Inovia Capital, J-Angels and 22 angel investors, including Amir Faintuch, SVP at Global Foundries, and Francoise Brougher, COO of Pinterest. In conjunction with the funding, Hourly also announced that Faintuch, who has been an advisor to Hourly, has joined as Executive Chairman of the Board.

Hourly was founded as a result of issues the company’s CEO, Tom Sagi, was experiencing first-hand in a role where he was responsible for payroll and workers’ comp in the construction industry. Tom Sagi is a serial entrepreneur with years of experience in the SMB segment. Hourly is on mission to liberate small business owners from cumbersome processes related to workers’ comp, payroll and time tracking.

“I have seen business owners spending an entire day each week reconciling payroll, figuring out workers’ comp premiums and struggling with processing payroll. I thought, there has to be a better way,” said Sagi. “I wanted to liberate folks from that weekly ordeal, and with the incredible support of our investors, we’re well on our way to making employee management better for small business owners.”

Sagi’s co-founder and CTO is Shay Litvak, a technologist with 20 years of experience. The duo built Hourly as a mobile-first platform that empowers small businesses with the tools to manage all aspects of the workforce from their phones or computers. Hourly’s focus on ease, convenience and transparency helps business owners save time and money and build trust with employees.

“Small businesses with hourly employees have complex and unique needs, which legacy, rigid and inflexible software platforms are underserving,” said Aya Peterburg, a founding partner of S Capital. “Hourly is well-positioned to add another dimension of flexibility and expediency to managing that segment, and ultimately create a much more efficient workplace.”

“There’s a significant gap in the payroll and workers’ comp market, because many small businesses rely heavily on outdated tools and services,” said Haim Sadger, founding partner of S Capital and a 21-year veteran of Sequoia Capital. “Tom, with his sharp business acumen, and Shay, with his strong technology background, have come together to solve this problem in a way that is transforming the industry. We’re proud to be part of the team bringing game-changing technology to the hands of small business owners.”