Israeli-American remote employee and contractor payroll platform developer Deel has completed a $30 million Series B financing round led by US venture capital fund Spark Capital, with the participation of Andreessen Horowitz. Other investors in the company include the Y-Combinator accelerator and angel investors Nat Friedman, Ryan Petersen, John Zimmer, William Hockey and Alexis Ohanian. Israel's Sarona Partners Group was the first investor in Deel.
Deel has completed its Series B round only four months after closing its Series A financing round, in which it raised $14 million. Since it was founded at the end of 2018, the company has raised $48 million.
Deel has 36 employees around the world, of which 12 are in Israel. The company's cofounders CEO Alex Bouazis and chief revenue officer Shuo Wang are both graduates of MIT.
Deel combines HR and fintech in a world that is becoming more and more digital and after the coronavirus - a world that will have more and more people working remotely, even sometimes working for a company that is based in another country. In effect, efficient and rapid access to employees from afar is the future of the future jobs market, and that is exactly where Deel comes in.
The platform that the company has developed allows payment to both full-time employees and independent contractors (freelancers), which complies with the currency and the labor laws in the source country of the full time employee/ independent contractor. The platform is based on a directory built by the company and includes different local templates for work contracts, which can be used to hire remote employees legally and at short notice.
Moreover, the platform allows the employer to pay the salaries of his full-time workers through a range of payment channels such as by credit card, bank transfer, and automated clearing house. Independent contractors can receive their payments through PayPal, Payoneer (which is itself an Israeli company) or bank transfer. "To provide your global team a local employment experience," Deel describes its vision on the homepage of its website.
"We’ve squashed the conventional notion that there’s a particular radius in which you can attract talent," said Alex Bouaziz. "By bridging localized compliance and payments and then automating it, we are making a complex and manual process seamless and redefining our customers' hiring pool to literally include qualified candidates from anywhere."
Angel investor Alexis Ohanian an early-stage investor in Deel said, "Deel’s platform makes more diverse hiring choices possible. Unbound by geography, businesses can hire the best person for the role, wherever and whoever they may be."
Sarona Partners founder Phillipe Bouaziz said, "We are excited to see Deel take off. It changes the way in which hundreds co companies employ workers, in Israel and around the world. This is only the start."
"I was interested in Deel from the get-go as the best suited to be the winner in a category on the cusp of huge growth," said Yasmin Razavi, General Partner at Spark Capital. "The hurdles employers face when hiring employees in other global regions can be so Herculean, they ultimately give up on hiring their ideal candidate and settling for the most hirable. Deel eliminates those hurdles."
Since Deel completed its Series A financing round last May, the number of customers has risen threefold to more than 500. Deel supports its customers employing workers in more than 140 countries. Most of the company's customers are startups like Deel, because they are more likely to be global from the first moment that they commence operations.
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