Pick up: Investing in Deel
News summary: Deel, a payroll system for remote teams, announced on the 21st that it has implemented a $14 million fund-raising in Series A. The leading investor is Andreessen Horowitz (A16z).
Deel is the startup of a dedicated payroll and management system for telecommuting teams. Each country has a different tax system and compliance. The price is on a monthly basis, at $35 per person in the fleet. In addition, there are 110 countries at this stage.
Topic focus: Deel graduated from the Y Combinator Accelerator Program last year and is believed to have won 400 customers. This is also a product for cross-border "remote teams", and existing users are mainly occupied during startup.
Congrats to@Deel (YC W19) on raising their$14M Series A led by@a16z. Deel is on a mission to enable remote work for businesses on a global scale! Https://t.co/47sW62fRII
-Y Combinator (@ ycombinator) May 21 Magi 2020
So far, we need to set up an international team and arrange the contract-payment process according to the supervision of each country. Especially for multiple countries, it is difficult to internationalize remote teams due to rising costs.
Deel provides different labor law mechanisms for each country as SaaS. The public information required by KYC in the contract is not universal, but is classified by country and serves as the back office of the enterprise used, which also helps to simplify management.
In addition, the company's platform can seamlessly pay for members scattered across countries. You can set the payment date at the same time as the contract and select the remittance option for credit card, PayPal, ACH or wireless transfer. The recipient can use PayPal or bank remittance and collect it in domestic currency.
Deel proposes "Give your global team a local experience" in its vision, which aims to promote cross-border "companies". In other words, at this stage, the focus is on the core contract payment of team-building, and the experience of insurance and benefits that must now be available in the "on-the-spot environment" will become borderless.
In fact, in the company, in addition to the company that has begun to establish a mechanism, such as the easy introduction of welfare global teams, social trends that require office COVID-19 to be questioned again will be tailwind.
According to CB Insights, Q1's Finteric start-up funding fell to 37% of YoY in 2020, to $6.1 billion. This is the lowest total purchase volume since Q1 since 2017, as is the impact of COVID-19 on Finland's technology industry.
However, it was at this time that Deel raised $14 million in the series A. In the launch of Finteric, it is also understood from the aspects of social career content and VC. Of course, the "new normal" is constantly being questioned in society, and the "working environment" will play an important role as a factor in the definition.
Therefore, in order to try new ways of working, a compliant labor contract infrastructure is essential, and Deel is likely to serve as a central platform for both the short and long term.
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