Pay As You Go Workers Comp for Small Businesses
What the company does
Headquartered in Palo Alto, California, Hourly.io is an insurtech startup offering full-service payroll and workers & comp insurance for small and medium businesses with hourly workers. Powered by real- time data, Hourly’s platform ensures running payroll is as quick as pressing a button and that you get accurate workers’ comp premiums down to the penny.
The Current Landscape
Hourly has found success and growth despite the insurtech industry
having weathered tough times recently. (Earlier in 2022, competitor
Coterie Insurance was hit with layoffs.) Several other competitors
exist including Pie Insurance, Next Insurance, Lemonade, Hippo,
Thimble Insurance, and Foresight.
Company Birth Story
Hourly was founded in 2018. Co-founder and CEO Tom Sagi was struck with inspiration for Hourly after managing a construction company and dealing with the frustrations of manually handling payroll and workers' comp for hourly employees—it's far more complicated and time consuming than most people think, especially for workers with high-risk jobs. Insurance premiums are based on annual payroll estimates but these estimates are often wrong. Changes in staffing, hours, and pay make it nearly impossible to accurately determine payroll—resulting in companies overpaying or underpaying premiums for hourly workers.
Sagi realized there had to be a better way and set out to make his vision a reality: To create an app that allows businesses to pay teams from anywhere in just a few minutes and to see their total labor costs including workers’ comp premiums, down to the penny and in real-time. He teamed up with co-founders Shay Litvak (a technologist with two decades of experience) and Amir Faintuch (a tech entrepreneur, investor, and senior executive) and together they created the Hourly platform to solve this problem.
Hourly combines workers’ comp, payroll, and time and attendance in a single platform—three aspects that other companies offer separately. Hourly is the only player in the game that bridges this gap for small and medium business owners while making it super easy to pay and insure their hourly workers.
Hourly has already found early success: In just two and a half years, Hourly’s team grew from 14 to 90 employees and onboarded nearly 1,000 new customers. The company’s revenues have been growing 20% month-over-month.
Hourly secured $7.2M in seed funding in 2019. In June 2022, Hourly announced $27M Series A led by Glilot Capital Partners with additional participation from S Capital, Vintage Investment Partners, and MS&AD and has raised $34.2M in venture capital to date.
Hourly’s vision is to revolutionize the $50 billion workers’ comp industry by making payroll, time tracking, and workers & comp super simple for business owners with hourly workers.
A Customer Story
Edgar Ochoa always dreamed of owning his own business. Beginning his career in construction as a laborer, he soon advanced to become a foreman, overseeing large construction and excavation projects. But the dream to start his own company never faded. After founding Angel’s Excavation and Construction, he turned to Hourly for help. Hourly guided Edgar through the steps to implement proper business practices, obtain necessary licenses, and apply for his FEIN and EDD number.
Hourly’s guidance didn’t stop there. With Hourly’s help, Edgar recruited employees, established workers’ comp and an overtime policy, created an employee handbook and safety plan, and implemented a system to pay his workers. With Hourly’s help, Edgar achieved his dream of owning his own business.
The Team Culture
Hourly’s core team is comprised of co-founder and CEO Tom Sagi, co- founder and Chief Technology Officer Shay Litvak, and co-founder and Executive Chairman Amir Faintuch. Dan Sevilla serves as Chief Financial Officer. Teh Chen is Chief Revenue Officer while Tomer Eiliam and Jerico Foutch-Vinsonhaler have recently stepped in and serve as Chief Analytics & Risk Officer and Vice President, Head of Underwriting respectively. Ben Harborne is Vice President, Head of Marketing.
Hourly is a fully remote company and has employees across the US and Colombia and prides itself on a collaborative and close-knit team culture.
A founder quote
“Hourly is committed to making payroll and workers’ comp super simple for business owners,” said co-founder and CEO Tom Sagi. “We’ve come a long way in a very short time. With our teams of software engineers and designers, sales experts, insurance professionals, and marketers, we’re dedicated to making workers’ comp and payroll better and easier for everyone with hourly workers.”
Check it out: https://www.hourly.io/
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