Compaas Raises $4.3M Seed To Help Companies Assess Employee Compensation

A new $4.25 million round of total funding has supported Compaas in expanding its compensation intelligence platform to include a tool for companies to navigate transition to remote or hybrid work models.

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Core Ventures Group led the round, joined by Bloomberg Beta, Kapor Capital, Tuesday Ventures, HashtagAngels and Alpine Meridian. The $4.25 million in total funding includes two previous smaller rounds, including a $1.1 million investment in 2018, according to the Crunchbase database.

After its initial seed round, Compaas continued to grow its platform, adding its rewards product to help customers give raises in a way that is fair and makes sense. The new funds will enable the San Francisco-based company to launch its new Compaas Index product that provides market data—one of the most asked-for features, CEO Bethanye Blount told Crunchbase News.

Blount and co-founder Lisa Dusseault had the idea for Compaas a decade ago while working at other startups they had founded: Blount for email company MailRank, which was acquired by Facebook in 2011, and Dusseault at Klutch, which was acquired by StubHub.

They both saw how compensation decisions were being made in spreadsheets and wanted to provide companies with prediction resources so they can make the right decisions for employees, as well as themselves, and consistently communicate what an employee earns and why they earn it.

“We think there is a sweet spot where both exist, and retention increases when there is trust,” Blount said. “We want to make the most of the biggest operating expense companies have and to support the employee lifecycle from the first day they start.”

Its new Compaas Index product provides compensation data that offers analysis for remote, hybrid or in-office companies. It connects to existing human resources systems and assists companies in evaluating their employee compensation, from setting salary bands, to raise cycles, to pay equity and employee communication.

Companies can personalize the data to receive feedback about fast changes happening in the market, Blount said. She predicts that 25 percent of employees are able to work remotely now, and that 65 percent of that group will want to continue to work remotely.

“As complicated as it is to set up compensation, it is orders of magnitude harder when you go remote because everyone has a separate package, and the company has to keep up with it,” she added.

Customers using Compaas tend to be venture-back companies, including The Motley Fool and GitLab.

Brittany Rohde, senior manager of total rewards at GitLab, said in a written statement that Compaas has saved GitLab time by removing the endless spreadsheets.

“Compaas simplifies our job and gives us confidence in our decision-making,” she added.

Illustration: Li-Anne Dias