Wagepoint has raised a seed round.
The Waterloo-born startup raised $2 million in capital. The financing was led by by venture capital firm Extreme Venture Partners. The Business Development Bank of Canada and the Atlantic Canada Opportunities Agencies also invested, as well as Canadian and US angel investors.
The HR tech company, which specializes in online payroll, says it will use the funding to accelerate its penetration into the US market and enhance its product portfolio.
“Very simply, we’re redefining payroll for small business, making it as easy for a small business owner to use as Facebook,” said Shrad Rao, CEO of Wagepoint. “Over the last eighteen months, we have built an amazing product that dramatically simplifies life for small business owners, with a customer base of nearly 700 companies that we love and who love us back.”
According to US Census Bureau, in 2011 there were 5.6 million employer firms, and 99.7 percent of those firms were operating with fewer than 500 employees. There are an additional 1.1 million small businesses operating in Canada.
“One of our core beliefs as a company is to surround ourselves with individuals who can help us achieve our business goals and who we genuinely like to be around,” Rao said. “This group of investors was carefully handpicked as they meet these criteria perfectly. We are excited about 2015, as we roll out further products to automate workflows surrounding payroll and compensation as a whole.”
“Within this Human Capital Management space, Wagepoint has carved out its niche, creating a simple, intuitive payroll solution that small business owners and HR managers actually want to use,” said Sunil Sharma, Managing Partner, Extreme Venture Partners. “This kind of disruptive thinking, aimed at a small business market that has literally millions of potential customers, presents huge potential for success.”
“The US small business market represents a huge market opportunity, and I truly believe Wagepoint and its products can transform the way small business works,” said Jerry Kestenbaum, founder of BuildingLink and a US Wagepoint angel investor.