Eltrys exclusively reported that Bread & Butter Ventures led a $1.6 million pre-seed round for performance management firm SocialCrowd.
SocialCrowd, a 2020 SaaS platform for performance management, lets firms define objectives and reward workers. Raphael Akinsipe, SocialCrowd’s co-founder, told Eltrys that his platform is like Fitbit for business.
Akinsipe says SocialCrowd connects to productivity applications to measure staff performance in real time for customers who establish incentive programs with particular targets. SocialCrowd then reminds employees to meet their objectives, and when they do, they get points they may spend on gift cards or time off.
He said SocialCrowd has gained attention as corporations struggle with remote labor. “Many of our customers have large blue-collar shift teams; their staff could not transition to remote work during or after the pandemic,” Akinsipe added. Many of these organizations struggled to keep people, increasing demand for solutions that boost productivity and retention.
Work software is a bright area for investors, despite the recession. Investors like the idea that work software can boost productivity and ROI, and they like that companies buy it even when the economy is bad.
Akinsipe claimed his company’s fundraising was a marathon. He met most of his main investors via recommendations and raised this round in nine months. He remarked, “Last year was a tough time to raise for everyone.” “There were tons of ‘No’s’ and even more ‘Not right nows,’ so closing the round took endurance and creativity.”
The financing included VC 414, Serac Ventures, and Gala Capital Partners. SocialCrowd will utilize pre-seed funds to grow its workforce and acquire customers.
Bread & Butter managing partner Mary Grove praised SocialCrowd’s consumer-first and employee-focused strategy. She told Eltrys, “Feedback from [the company’s] current customers has us excited that this platform is a win-win for both employers and frontline workers within those organizations.” “We’re backing an incredibly smart team that is deeply focused on enterprise SaaS and product-first building.”
“I envision a future where our platform delivers more than just incentives and rewards but is truly a tool for employee growth and business insight,” Akinsipe added.
Roommates in college, Akinsipe and co-founder Paul Doran met. They founded a hardware firm that was funded a little but failed to exit. “From that point on, we knew we would stay entrepreneurial,” Akinsipe added.
The pair founded Glow Station and Just Media Studios, online design and management companies. Akinsipe worked at Google and Casetabs, which Bain Capital bought.
