Performance management startup SocialCrowd has raised $1.6 million in a pre-seed round led by Bread and Butter Ventures, TechCrunch has learned exclusively.
Launched in 2020, SocialCrowd is a SaaS platform that provides performance management software that allows companies to set goals for their employees and reward them when they achieve them. In an interview with TechCrunch, SocialCrowd co-founder Raphael Akinsipe compared his company's product to a Fitbit, but for work.
Akinsipe said customers can set up incentive campaigns with specific goals, and SocialCrowd tracks the performance of customers' employees in real-time by connecting to existing productivity apps. SocialCrowd then sends reminders to employees to reach their goals, which reward employees with points that can be redeemed for custom rewards like gift cards or vacation time.
He said SocialCrowd has received increased attention as companies struggle to cope with the transition to remote work. “Many of our customers have large blue-collar shift teams. Their staff has not been able to transition to remote work during or after the pandemic,” Akinsip said. “Many of these companies are struggling to retain employees, further increasing the demand for solutions that facilitate employee retention and increased productivity.”
Despite the economic downturn, work software remains a bright spot for investors. The potential link between increased productivity and higher return on investment for work software is attractive to investors, and companies are more likely to spend money on work software even in a downturn. They are also attracted to this fact.
But Akinsipe said fundraising has been a marathon for his company. It took us about nine months to raise this funding, and we met most of our lead investors through referrals. “Last year was a difficult time for everyone to raise money,” he said. “There were a lot of 'no's' and a lot of 'not now's,” so it took a lot of patience and creativity to get through the whole round.
VC414, Serac Ventures and Gala Capital Partners also participated in the round. SocialCrowd plans to use the pre-seed funding to expand its team and focus on customer acquisition.
Bread & Butter managing partner Mary Grove said the company likes SocialCloud's consumer-first approach and focus on its employees. Feedback from [the company’s] “Our current customers are excited that this platform is a win-win for both employers and front-line employees within their organizations,” she told TechCrunch. “We're backing a very smart team that is well-versed in enterprise SaaS and building with a product-first perspective.”
“I envision a future where our platform is more than just incentives and rewards, but a true tool for employee growth and business insight,” Akinsip said.
Akinsipe and his co-founder Paul Dolan first met as college roommates. They launched a hardware startup together and raised a small amount of capital, but couldn't find an exit. “From that point on, we knew we would continue on our entrepreneurial path,” Akinsip said.
The two went on to launch several startups, including web design company Glow Station and website management service Just Media Studios. In addition to Google, Mr. Akinsipe held positions at Casetubs, which he sold to Bain Capital.