WorkHound announced Tuesday that the company has successfully completed a fundraising seed round of $1.5 million. The capital will, in large part, be used to add to the company’s technology team headcount and support its growth deeper into the logistics space and additional industries.
“To date, we’ve been fortunate to fuel WorkHound growth primarily with our revenues,” said Co-Founder and CEO, Max Farrell. “But as we eye an aggressive expansion into new industries, as well as building out our transportation and supply chain presence, raising a substantial seed round became imperative for us. This capital will enable us to hire more top-notch talent who will power us into the next phase of our company.”
WorkHound was launched in 2015 by Mr. Farrell and Andrew Kirpalani, co-founder and CTO, in Des Moines, Iowa. Today, WorkHound is a dual-office company with anchors in Des Moines and Chattanooga.
The WorkHound platform enables employers to receive instant and anonymous workforce feedback so management can address those matters as part of their employee retention efforts. Initially, the company focused on the trucking space since driver turnover is a pain point experienced across that industry. However, as WorkHound grows, leadership is eyeing a rollout into additional sectors, such as non-hospital healthcare, that feature large distributed workforces.
"Among other positions, this funding will allow us to aggressively grow our engineering team," said Mr. Kirpalani. "We have strong core talent and are excited to add several experienced developers. We need more people on our team who consider the word 'average' to be substandard. This capital will allow us to attract and compensate those people appropriately. We have developed a roadmap of features to be implemented with cutting edge technologies like machine learning and we're eager to bring on the people that will help us deliver that value to our customers."
The fundraising round was led by San Francisco-based Right Side Capital Management, and included other notable funds such as SaaS Ventures, Stout Street Capital, Acceleprise, SpringTime Ventures, and Comeback Capital.
“We’re very excited about WorkHound because employee retention is such a pertinent issue in today’s work environment," said David Lambert, managing director of Right Side Capital Management. "Their customers are seeing dramatic reductions in employee turnover, which of course goes straight to their bottom lines. We believe the WorkHound product is relevant to any industry that has high-skilled employees in high turnover positions. Their growth has been exceptional to date, and we see that continuing for a long time.”
For additional WorkHound information, please visit: https://workhound.com/