A Series A round investment initiative spearheaded by Andreessen Horowitz has led to a $14 million funding round for Deel, a San Francisco-based remote worker payroll platform. Anish Acharya, a general partner for Andreessen Horowitz, will join Deel’s board of directors.
Unlike traditional venture funding rounds which usually take place in-person, the funding round was performed via videoconferencing, an unusual circumstance considering investments of large sums were being considered.
Deel was founded in 2018 by Shuo Wang and Alex Bouaziz, both MIT graduates. The Silicon Valley startup capitalized on an increasingly remote and distributed workforce trend. The coronavirus pandemic has only accelerated the practice of working from home, which has been good news for Deel. While other startups have struggled to get funding, Deel’s investment score is promising to other startups seeking funding. During the first quarter, fintech funding fell by 37 percent, ending at $6.1 billion.
Deel’s primary service enables clients to hire remote workers more easily and pay them no matter where they live. The company utilizes one software program instead of a bundle of services like many companies use.
Dan Westgarth, Deel CEO, said, “We’ve seen companies that typically hire in a 30-mile radius around San Francisco, New York, or Boston, replace that with a location perimeter of ‘anywhere’. It’s a function of the pandemic, which taught businesses located in these expensive metro areas that they don’t need employees based there because remote teams are performing very well.”
Westgarth recently joined Deel from Revolut, a digital bank located in London.
Because labor laws vary in different countries, Westgarth pointed out that some companies use 10 individual providers to pay their teams in Asia and Europe.
Westgarth pointed out, “We allow people to very quickly hire people anywhere without having to worry about local labor law, which is very time-consuming.”
Deel also helps client retention of employees by helping workers obtain benefits, like insurance.
Deel has secured 400 clients since last year. Many of them are start-up companies as well.