Recent Funding

Humaans raises $5M seed to make it easier for companies to on-board and manage staff

Humaans, a London-based HR startup, has raised $5 million in seed funding to accelerate the development of its employee on-boarding and management platform. Backing the round is Y Combinator, Mattias Ljungman’s Moonfire, Frontline Ventures and former head of Stripe Issuing, Lachy Groom.

A number of other investors, made up of seasoned entrepreneurs and startup operators, also participated. They include LinkedIn CEO Jeff Weiner (via Next Play Ventures), Stripe COO Claire Johnson, Figma CEO Dylan Field, Intercom co-founder Des Traynor, former Workday CTO David Clarke, former Benchmark GP Scott Belsky, Notion COO Akshay Kothari, Qubit co-founder Emre Baran, Evervault CEO Shane Curren and Stripe head of security Gerardo Di Giacomo.

Founded by former Qubit employees Giovanni Luperti and Karolis Narkevicius, Humaans came into existence formerly in April 2020 after the pair quit the product agency they had founded together. With a soft launch the previous year while bootstrapping, and with validation from early users, Luperti and Narkevicius decided they had found enough product-market fit to focus on the startup full-time.

“We bootstrapped Humaans by reinvesting capital from the previous businesses we co-founded,” explains CEO Luperti. “After gaining initial commercial traction, we decided to raise capital and brought a number of investors and operators onboard, and joined Y Combinator”.

Pitching itself as a central hub for employee on-boarding and management — or a single source of truth for staffing — Humaans aims to play nicely by integrating with other existing SaaS used across the “HR stack”. This is because scaling companies are increasingly rejecting all-encompassing HR software and using the best modern SaaS offerings for various different functions.

“Companies are frustrated with poorly integrated HR stacks, making processes slow while exposing them to compliance risks,” says Luperti. “This is why the adoption of point solutions is increasing dramatically. Companies are adopting what’s best based on their needs and stage of growth to address their people needs”.

For example, a company may choose an applicant tracking system, a performance management system, contract management software and an employee engagement platform, and so on. “This makes the ‘all-in-one’ model antiquated, creating the opportunity for a solution like Humaans to emerge. We’re building a layer of infrastructure for all employee data”.

This is seeing Humaans attempt to bring together the full HR stack and automate processes like on-boarding, off-boarding and compensation management with fast workflows that can be set up not dissimilar to an IFTTT or Zapier-style type of interaction model.

Image Credits: Humaans

“If you ask around, most employees dislike their HR software,” says Luperti. “HR tools have historically been clunky, slow and not good at providing a good user experience. Existing players focused more on sales and acquisition than retention through product. But HR buyers today are more sophisticated than ever and have an appetite for best in class. We’re building the Slack of HR… an employee management platform that’s both delightful and very powerful”.

To that end, Humaans says it grew 3x in the past few months and is popular amongst distributed companies, such as Pleo, ChartMogul, Bombinate, HeySummit and Pento.

Adds the Humaans CEO: “There are two segments of existing players: those targeting SMEs, and those working with corporations. Serving the companies in the middle is the opportunity we’re going after”.

BrioHR raises $1.3M ahead of Y Combinator’s demo day

As the next Y Combinator demo day approaches, more startups from the current Winter 2021 batch are showing up in our inboxes. One of the most interesting from the mix is BrioHR, which is building human resources (HR) software for Southeast Asia.

The company fits into a theme I’ve noticed amongst startups, namely a focus on taking proven software genre approaches to specific parts of the world, localizing them and building in-region winners. This theme is not new, of course, but it does feel slightly more pronounced amongst recent accelerator batches than before (TechCrunch covers Techstars, Y Combinator, 500 Startups and other accelerators as part of our startup focus). Perhaps this is the impact of so many accelerators going virtual, widening the founder pool from whom they might matriculate to include a more global group of founders.

Back to BrioHR itself, the company is announcing $1.3 million in fundraising, inclusive of its YC check. The investment was led by Global Founders Capital, and saw participation from East Ventures and angel investors.

TechCrunch caught up with Benjamin Croc, the company’s co-founder and CEO, who is located in Kuala Lumpur, Malaysia (the city pictured in the image at the top of this post). The time zones were tricky to navigate, but the company’s vision was simple enough: A software-as-a-service (SaaS) HR software suite, tailored to fit the laws of the Southeast Asian region.

Croc and his co-founder, Nabil Oudghiri, founded the company in 2018, incorporating in the second half of the year after talking over their idea for a few months. BrioHR did not launch its product until the fourth quarter of 2019, opening for what Croc described as early adopters. The startup launched more broadly in the first quarter of 2020, right in time for COVID-19 to shake up the world.

Its fundraising came in two chunks, one in the middle of 2020 and one that came in the third quarter of the year; the first chunk of the raise was larger than the second. BrioHR raised the capital using a convertible note, with terms that Croc described as near to standard.

In our conversation, TechCrunch was curious about how prevalent SaaS as a model is in Malaysia and the other countries the startups wants to sell into. The co-founder said that while SaaS is not as well known in his part of the world as it is in the United States — not a huge surprise given that the U.S. is the largest SaaS market in the world — he praised the speed at which Southeast Asian countries adopt business trends; if Croc is right, his view could point to a very active subscription software market in the region in coming years.

BrioHR competes with local companies that are more focused on providing single solutions, like payroll management. From our discussion, it appears that Croc hopes that by going broad, in a feature sense, BrioHR will surpass legacy competitors. The startup is itself still building out its regional tooling, providing payroll support in only a handful of countries. It intends to expand that service to new countries this year, and be everywhere with its payroll product in two to three years, its co-founder said.

Notably, even though it has already raised capital, BrioHR intends to take part in Y Combinator’s demo day. Croc said it is taking part for optionality. TechCrunch read that as the company isn’t actively looking to raise more capital at the moment, but wouldn’t turn down another convertible note at a comfortable cap. Then again, what company at any demo day would?

Since launching out of its early-adopter program, Croc said that the company has grown 10x. That’s not hard from a small base, so the company’s 2021 growth will be more illustrative of its true near-term potential. Let’s see what new metrics it breaks out in a few weeks’ time.

Murmur, still in private beta, wants to help startups make private work agreements public

As building in public continues to gain popularity with early-stage startup founders, Murmur, coming out of stealth today, wants to leverage that natural transparency to a louder frequency.

Founded by Aaron Dignan, Murmur helps startups create work agreements based on the policies of other startups. “Work agreements” is an intentionally broad phrase, but encapsulates everything that a team decides about how work works, from paternal leave strategies to strategic priorities to how hiring works.

“It’s everything you’ve ever argued about [within your startup],” Dignan said.

It requires a healthy level of transparency within the ecosystem, meaning that a startup would have to be open with sharing its policies to the public in the first place. But, if Murmur works, it could help early-stage founders save time on the pain-staking process of figuring out how to build policies from scratch around hiring, OKR goals and vacation policies.

Instead, a new founder could just rely on other, seasoned founders, who have shared their policies for anyone to enjoy, and customize their own plan based around those practices.

Today, Murmur announced that it has raised $1.8 million to scale its working agreements platform in a round led by Lerer Hippeau, with participation from SemperVirens, Human Ventures and Remote First Capital. Other investors include Steve Schlafman, Mariano Suarez-Battan (the CEO of Mural), Brian Sugar (the CEO of PopSugar) and Adam Pisoni (the co-founder of Yammer).

The company, still in private beta, will be launching to the public in early summer 2021.

Murmur is a web-based platform that allows startups to author, customize and plan policies that will shape a team’s culture. The platform helps teams go from proposal to decision with features like voting, edits and feedback throughout the process of creating an agreement. Instead of pushing a copy and paste of another startup’s policy, Murmur prompts founders to use the outsourced policies as seeds, and add customization as they go.

“Anybody can Google and find some company’s years-old processes; the trick is in making an inclusive ‘agreement’ with real time all participating in the magic of keeping it and iterating it, and improving it,” Dignan said.

Image Credits: Murmur

Right now, it is free for anyone to see listed company public agreements. But it costs money to use the Murmur platform to create and customize your own agreements off of this information. With this format, you can see that Dignan thinks that the conversion power of the company lies more in its platform than the content.

Dignan tells me that the team is still testing pricing strategies, but the current plan is a free trial followed by a monthly per-seat fee of $12 to $15 per month, per user. One day, companies could charge a premium for a “kit” of tools on their platform.

Murmur’s initial target for customers are startups that are growing fast and already work in public, such as Buffer, Basecamp, Lattice and Blinkist, but in the future, big enterprises could also see it useful.

Murmur is launching amid a general trend of companies that are pitching themselves as best-practices-as-a-service. Companies in this space aren’t simply enabling other startups to use a fancy SaaS tool, they are not-so-gently pushing them to use those tools in the best possible way for the best possible outcome. Murmur, if it hits scale, could help the next generation of startups figure out the best way to start companies.

Dignan says that the startup “aims to do for working practices what GitHub did for code.”

Remote work is obviously a key catalyst for the company, since the transition has reminded teams that transparency, standards and communication is vital to a functioning organization.

While the startup currently only has Murmur working agreements on the platform, it plans to onboard the agreements of dozens of companies in the coming months. Even though the platform is what makes Murmur special, it’s clear that curating agreements from top companies plays a vital role in Murmur’s success.

It is not paying companies to publicly list their agreements, and the branding benefit of transparency is well worth the confidentiality cost of sharing due to recruitment benefits.

Dignan says connections from his book about the future of work will help land those agreements. Writing a book about a changing world of work before a global pandemic turned everything upside down is ironic, but Dignan, it appears, doesn’t view Murmur as a pandemic pivot.

“I’ve been thinking about this tool for seven years,” he said. But he didn’t think an opinionated tool would have a large enough total addressable market, and that anything that would scale would just reinforce the status quo. He didn’t build Murmur for a while because he thought that the ecosystem didn’t need “yet another customer engagement tool.”

So, he waited. And the pandemic, another peak of the Black Lives Matter movement and the election happened within one year.

“It was all signaling that the complexity is too much,” he said. “We need new ways of working, making decisions and organizing as people. And that felt like this huge moment where we plant the seed and in a few years’ time, the market will be huge.”