Bambee Raises $30 Million to Give Small Businesses HR Help

Harri Weber

Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

Bambee founder and CEO Allan Jones
Courtesy of Bambee

Sign up for dot.LA's daily newsletter for the latest news on Southern California's tech, startup and venture capital scene.

Bambee, a Los Angeles-based startup that takes care of human resources for small- and medium-sized businesses, has raised $30 million in new funding to scale up its HR tools and staff.

There are about 6 million small businesses in the U.S. with paid employees, and the vast majority of them—96%, according to Bambee founder and CEO Allan Jones—don’t have in-house HR services to address matters like hiring and anti-harassment training. That is the market Bambee is looking to serve.


Led by fintech-focused venture firm QED Investors, the new round takes Bambee’s total funds raised to date to $65 million. SoftBank, General Catalyst chairman Ken Chenault and American Financing CEO Damian Maldonado also joined in on the deal, as did Santa Monica-based Mucker Capital, L.A.-based Alpha Edison and Gaingels, a syndicate that aims to represent the LGBTQ+ community in venture capital.

Plenty of software companies offer HR and payroll services, including Gusto and Justworks, but Jones says that Bambee is the “only business that offers a dedicated HR manager for $99 [per month].” Bambee directly employs its HR managers, each of whom work on multiple client accounts (the number of which varies based on the size and complexity of the client’s business, per Jones).

Without sharing specific figures, Bambee said in a statement that it doubled its revenue last year and is on track to do it again in 2022. The nearly six-year-old company has just shy of 10,000 paying subscribers.

The Series C round will go toward expanding Bambee’s HR and payroll offerings as well as hiring 150 new employees, primarily at its Downtown L.A. headquarters. The firm also plans to grow its engineering team in Nashville.

A veteran of the L.A. tech scene, Jones dropped out of college to work at wireless network operator Helio in 2006, a few years before the startup was snapped up by Virgin Mobile. He went on to work with Peter Pham’s Science Inc., ZipRecruiter and early-stage investor Amplify before launching Bambee.

Subscribe to our newsletter to catch every headline.

Cadence

Riot Games Doubles Down on Mobile With ‘Aim Lab’ Investment

Samson Amore

Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him

Riot Games Doubles Down on Mobile With ‘Aim Lab’ Investment

Riot Games has invested in virtual shooting range developer Statespace, accelerating the Los Angeles video game developer’s efforts to dominate the mobile gaming space.

Read more Show less
https://twitter.com/samsonamore
samsonamore@dot.la

Meet Surf Air Mobility, the Startup Trying To Electrify Air Travel

Samson Amore

Samson Amore is a reporter for dot.LA. He previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Samson is also a proud member of the Transgender Journalists Association. Send tips or pitches to samsonamore@dot.la and find him on Twitter at @Samsonamore. Pronouns: he/him

Meet Surf Air Mobility, the Startup Trying To Electrify Air Travel
Courtesy of Surf Air Mobility

The airline industry is a notoriously terrible polluter, with large carriers struggling to find ways to limit the more than 915 million tons of carbon emissions produced by their industry each year.

Read more Show less
https://twitter.com/samsonamore
samsonamore@dot.la

Ranavat’s Founder on How Pregnancy and Ayurveda Inspired Her to Start Her Skincare Company

Yasmin Nouri

Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.

Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.

Michelle Ranavat
Photo credit: Grey and Elle

On this episode of Behind Her Empire, Michelle Ranavat talks about how pregnancy and traditional ayurvedic remedies inspired her to start her skincare company, and how she grew it without relying on outside funding.

Read more Show less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending