Pequity Raises $19 Million to Bring Equitable Compensation to the Masses
Pequity, the first intelligent compensation platform that helps fast-growing companies create fair and competitive compensation programs, announced that the company has closed a Series A round of $19 million, led by Norwest Venture Partners with participation from First Round Capital, Designer Fund, and Scribble Ventures. Pequity saves companies time and money and helps them attract and retain talent by automating HR workflows from offer to signing to promotion and beyond. The platform helps HR & compensation leaders centralize their comp workflows, avoid comp problems before they happen, and create competitive compensation programs based on real-world data on industry ranges, market trends, and internal peer compensation
“Getting compensation right is critical to hiring talent and scaling companies – now more than ever fueled by national social movements like Black Lives Matter and the MeToo movement,” said Pequity Co-Founder & CEO, Kaitlyn Knopp. “Many fast-growing companies don’t have the tools or resources to scale compensation programs or rely on out-of-date spreadsheets to determine compensation, which can lead to a disjointed portfolio of offers that creates pay inequities and unsustainable comp packages – costing companies an average of $440,000 per year to correct pay gaps.”
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Since launching last year, more than 100 fast-growing tech companies – including Instacart, Scale.ai, and ClearCo – have used Pequity’s compensation platform to make more than 5,000 job offers since February of 2021.
“Compensation reflects a company’s values, affects its ability to hire talent, and is the biggest expense on its P&L. And yet, most comp teams run on spreadsheets and emails,” said Parker Barrile, Partner at Norwest. “Pequity empowers comp teams to design and manage equitable compensation programs with modern software designed by comp professionals, for comp professionals.”
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Pequity’s intelligent compensation platform helps companies avoid the problems and costs of slow hiring processes and pay equity gaps. The platform proactively compares the pay of employees in similar roles, levels and locations, and shows if it was significantly different before making pay decisions. Pequity also helps managers and HR teams review compensation decisions via approval chains, so numerous people can make sure that pay decisions, such as a new hire offer, is in line with the market data, ranges and team. Pequity’s platform integrates with existing HR software, specifically HRIS, ATS, and payroll companies, serving as a centralized, focused compensation solution.
“At Instacart, we’re proud to partner with Pequity to ensure we’re able to quickly and effectively manage through the offer approval process. Pequity’s analytics and reporting functionality, in particular, has allowed us to create a faster, more seamless and more insightful offer process” said Jessica Cheng, Director of Compensation for Instacart.
Pequity will use its Series A round to continue investing in product development and expand its hiring. The company currently has 20 team members and expects to double its workforce by the end of 2021.
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