At Finch, our mission is to empower innovators to access the global employment ecosystem. Since starting the company in late 2020, we’ve been excited about building a future in which the employment sector is both connected and programmable.
Today, we’re thrilled to announce that Finch has raised a $15 million Series A, led by Menlo Ventures, alongside General Catalyst, Bedrock, Y Combinator, and Sempervirens. We also brought on founders and executives from Gusto, ADP, Namely, Justworks, Workday, and other employment providers. Additionally, we are excited to have Matt Murphy, Managing Director at Menlo Ventures, join our board of directors, and Croom Beatty, Partner at Menlo Ventures, and Alex Tran, Managing Director at General Catalyst, join as Board Observers.
Enabling connectivity with Finch
The employment sector has undergone an important transformation over the past two years. Employers, financial technology, benefit providers, and HR applications have had to meet the rising expectations of today’s workforce. Adapting to these expectations requires robust connectivity to employment systems (HR, payroll, and benefits). Given the industry’s fragmentation (there are 6,000+ employment providers in the U.S.) and the complexity of the underlying data and functions, such an infrastructure did not exist prior to Finch.
Without that infrastructure, many companies have been forced to resort to CSV uploads and FTP. Other companies have opted to spend millions in development costs, alongside years of business development efforts, to build one-off integrations. For example, the co-founder and CTO of Human Interest, a prominent 401(k) provider, said that building payroll and HR connectivity was one of the most time-consuming parts of their engineering effort, but it was essential to their success.
What they needed was pre-built, universal connectivity that would allow them to reallocate their focus to their core product. Over the past year, Finch took on that responsibility, integrating with employment systems across HR, payroll, and benefits. We now provide mission-critical infrastructure powering applications across hundreds of B2B fintech, benefits, HR, and enterprise verticals. After a little over a year since our public launch, Finch has achieved multiple major milestones:
- Compatibility with 150+ employment systems
- Coverage of >88% of U.S. employers
- 5M+ daily API calls
- 10K+ employers connected to Finch, from small start-ups to publicly traded companies
- 10x YoY revenue growth
Powering the future of employment
Finch will continue expanding our connectivity and building blocks to enable our customers to create more innovation for employers and employees. With this new financing, we are focusing on three critical components of our infrastructure:
- Expanding coverage— Finch is already the leading infrastructure in terms of coverage and will continue down the path to be compatible with all 6,000+ providers in the industry.
- Powering the rails— Late last year, we launched the ability to manage deductions and contributions into payroll systems, a valuable product for all benefits providers. Deductions and contributions are just the beginning, as we will be expanding further down the stack into ACH to employers, reimbursements, garnishment, draft payroll, eligibility verification, and other segments that directly impact money movements.
- Connecting the employee lifecycle— Finch will build data pipes across all types of systems across the industry. We started initially with HR and payroll, the source of truth for employment records, but are continuing to add additional data models across benefits, equity, time and attendance, identity, and more.
The next chapter
We are grateful to our team members, customers, and investors who have supported us through this journey. While we are incredibly proud of how far we have come, we are still in the early innings of the employment sector’s digital transformation. As we look to support the massive growth and change that will entail, we’ll accelerate our investments in building infrastructure that enables an open, friendly, and secure data ecosystem.
If you want to have an incredible impact and the opportunity to change an industry, join our team. We’re hiring for all roles!