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Justworks login Finch raises $15M for an API to HR systems

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justworks login Finch, which creates APIs that connect corporate payroll, benefits, and HR systems, announced today that it has raised $15 million in a Series B funding round.

This was led by Menlo Ventures, with participation from General Catalyst and Bedrock. Jeremy Zhang, co-founder and CEO, said that the money will be used to expand the startup’s 36 employees, especially on the sales, engineering and developer sides.

Justworks login:  Zhang and Finch’s second cofounder, Ansel Perikh, started the startup 

justworks login

After contacting HR and payroll providers to discuss integrations, Zhang stated that they didn’t respond or requested that Zhang and Parikh go through a long procurement process.

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“As developers we were searching for a Segment, Plaid, or Stripe-like developer experience. In an email interview, Zhang stated that such an API infrastructure was not available in the employment sector.

Many developers have had to resort to FTP and CSV uploads. Others have spent millions on development costs… to create one-off integrations.

This lack of industry connectivity results in high administrative costs, increased lock-in from legacy providers, and prohibitive barriers for innovators.

Zhang was previously employed by Amazon’s robotics division. He then headed product for Smartcar which is an API platform for connected cars.

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Justworks login: Parikh is a veteran of the venture investing industry

Having previously worked as an analyst for Paradigm Capital and as an investor at Bond & Kleiner Perkins.

Zhang and Parikh, along with Finch, set out to create what Zhang calls an “API of employment systems”. The platform allows apps and services like Gusto, Justworks and Zenefits to access disparate employment data.

Zhang stated that “our direct competitor is the industry’s current status quo, which operates in three main modes: CSV uploads and SFTP servers, as well as internal operations.

 Applications require HR admins upload employee information, enrollment, and pay statements. Most companies have adopted SFTP servers for file transfer.

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This is safer than emailing employee data. It is more complicated to set up SFTP servers, and there is no standardization among companies.

Justworks login: Many companies rely on their internal operations team to log in, pull employee reports, and set deductions or contributions.

Finch offers specialized services such as Finch Benefits to address HR problems. This is designed to make it easier for employees to create benefits plans, enroll in benefits and manage contributions and deductions.

Finch Benefits updates an employee’s contributions in their benefits app automatically in the correct tax category.

Finch is a third-party platform that allows companies to funnel employee data. This may be a problem for some companies.

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Zhang stated that Finch does not currently conduct an analysis of data that passes through its systems. Customers can also delete data from Finch and stop sharing data with any Finch-connected apps at any time.

Let’s say you used Finch to connect your employment system with an app. Finch will then share your employment data with the app. Zhang explained that the types of data Finch shares depends on the permissions granted during the authorization process and information made available through the employment system.

 We do not share data with any app without your consent. The personal information we collect is not sold or rented to anyone.

Evidently, demand is high. Zhang stated that Finch serves over 10,000 employers, from startups to publicly traded corporations. Pave, Vanta, and Teampay are just a few of the customers.

“Employee data are scattered across multiple systems with no single source of truth,” Zhang said. Zhang stated that this is still the case as the industry grows more complex and adds new players.

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We have a strong partnership with an engineering team to create connectivity and encourage innovation and collaboration in the industry.

Zhang stated that Finch will be expanding his support for systems other than those managing benefits, recruitment and staffing. Zhang also said that the goal is to increase Finch’s involvement in employee identity and time management.

Zhang said that Finch would be able to help with tasks such as processing reimbursements, payroll running and other areas that directly affect money movements.

The pandemic has accelerated our business and caused many shifts in the employment industry

Zhang stated that more than $12.3 billion was invested in global HR tech by 2021.

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“Finch powers benefits providers that allow employers to offer alternatives to traditional retirement plans, such as mental health benefits, commuter reimbursements and financial wellness programs, as well as alternative retirement plans.

We have partnered with hybrid workforce management platforms and business registration services to provide procurement and expense tools that allow employers to create more flexible work environments.

We also work with learning management platforms, professional training platforms, and onboarding systems to assist employers in investing in their workforce over the long-term.

Finch’s growth strategy is key to its continued competitiveness in a market that has seen lots of interest recently.

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Andreessen Horowitz published a complete research report about the promise of APIs for payroll, while Plaid released an API system for income verification called Plaid.

Merge is a platform that integrates existing HR, accounting, and ticketing platforms into a single dashboard. Finch competes against Merge. Flexspring is another competitor that offers a product that connects multiple HR systems to allow data sharing.

Finch’s capital total stands at $18.6 million, according to the most recent funding.

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