BIRMINGHAM, AL. (November 2, 2023) – Founders is pleased to announce that Payroll Integrations has closed a $20 million Series A funding round led by Arthur Ventures, a Minneapolis-based growth equity firm with deep expertise in B2B software. Payroll Integrations provides direct two-way connections between payroll providers and benefit platforms as an integration platform-as-a-service (iPaaS). Payroll Integrations was exclusively advised by principals of Founders Advisors LLC in this transaction.
Founded by Doug Sabella and Andrew Hallengren in 2016, Payroll Integrations’ proprietary technology ingests employee census and payroll data from payroll companies and converts relevant information into a structured, ready-to-use format. Employers can connect payroll with retirement, health savings accounts and other benefit plans using Payroll Integrations’ platform, which enables more efficient processing and fewer errors. Payroll Integrations currently processes benefits for one million employees at over 4,000 companies. The company works with 70% of the payroll provider landscape, including ADP, Paychex and Quickbooks Online, as well as 90% of the largest 401k providers, such as Empower, Transamerica, Principal, Voya and John Hancock.
“Both the payroll market and employee benefits market have been slow to embrace new technologies, often relying on manual processes or complex custom integrations to exchange data,” said Doug Sabella, CEO of Payroll Integrations. “We have spent the last seven years doing the heavy lifting for benefits recordkeepers – building integrations with the largest and most widely-used payroll companies in the U.S. – so that they can offer their customers a seamless employee benefits experience, without the headache of manually tracking payroll and census changes each pay period.”
Arthur Ventures’ investment in Payroll Integrations is validation of the company’s ability to enable employers to run their business more effectively, and as a result, support employees’ financial well-being.
“Employers are trending towards more holistic financial wellness offerings and personalized benefit plan options for employees, introducing more administrative complexity and nuance for employers,” said Ryan Kruizenga, General Partner at Arthur Ventures. “Payroll Integrations is well-positioned as the go-to solution to reduce the administrative burden on employers and recordkeepers, whether for retirement plans, HSA plans, or other employer-sponsored benefit plans.”
“We couldn’t be more excited about this partnership and the future of Payroll Integrations,” said Brad Johnson, Director at Founders Advisors. “Doug and Andrew have built an impressive iPaaS company solving a unique pain point in the financial wellness and benefits space, and they have a tremendous opportunity ahead of them. It was a privilege to serve Doug and Andrew in this transaction, and we’re excited to watch as the Payroll Integrations team continues to execute on their growth strategy with the support of Arthur Ventures.”
Zane Tarence, Partner and Head of Founders’ Technology Practice, commented, “Doug and Andrew are phenomenal operators and the type of entrepreneurs that our firm loves to support. Building a high-growth software company with little to no outside capital is a meaningful accomplishment, and it highlights the product-market-fit they’ve established as well as the caliber of talent Doug and Andrew have assembled. We believe Doug and Andrew found the right partner in Arthur Ventures, and together, they will further cement Payroll Integrations’ position as the leading iPaaS platform in the benefits space.”
About Payroll Integrations
Payroll Integrations is the technology company that’s reimagining how employers support employees’ financial well-being through benefit automation. Their integration platform is used by more than 4,000 businesses to connect payroll with retirement, HSA and other employer-sponsored benefit plans for over one million employees. Payroll providers including ADP, Paychex, Quickbooks Online and others use Payroll Integrations to seamlessly connect with 401k benefit providers such as Empower, Transamerica, Principal, VOYA and John Hancock. Payroll Integrations is backed by Arthur Ventures and headquartered in San Diego.
About Founders Advisors
Founders is a merger, acquisition, & strategic advisory firm serving middle-market companies. Founders focuses on helping companies across technology, business services, consumer, energy, industrial, and healthcare industries. Founders’ skilled professionals, proven expertise, and process-based solutions help companies access growth capital, make acquisitions, and/or prepare for and execute liquidity events to achieve specific financial goals. In order to provide securities-related services discussed herein, certain principals of Founders Advisors, LLC are licensed with Founders M&A Advisory, LLC, member FINRA and SIPC. Founders M&A Advisory, LLC is a wholly owned subsidiary of Founders Advisors, LLC. Founders Advisors, LLC does not provide investment advice. For more information, please visit www.foundersib.com.