A local California transplant startup has raised a $3.1 million seed round to help it expand services and secure new partnerships.
SupportPay, which moved its headquarters to Charlotte from Sacramento in April, is a child-support payment platform created to reduce complex financial interactions between parents that are divorced or separated. The online and mobile app allows parents raising a child apart to organize, pay and track child support, alimony, schedules and shared expenses under a single tool.
The startup plans to use the funds to provide additional payment option plans for families, accelerate enterprise adoption of its platform and grow its services to support any family member such as siblings serving as caregivers for their parents. On Dec. 1, SupportPay started offering its services as an employee benefit for caregivers.
Earlier this year, the company also launched its offerings as an employee benefit for those who are involved in sharing, managing and tracking expenses, payments and schedules. It plans to reach new enterprise partnerships with the capital, said Sheri Atwood, SupportPay founder and CEO. One of its current partners includes global media giant Hearst Corp., which offers SupportPay as an employee benefit so workers can sign up for the platform at no cost. Hearst has seen a 7.3% company-wide utilization rate, double SupportPay's initial target.
"We estimate we are saving them over $7.1 million in direct productivity costs," Atwood said, referring to the annual impact of providing SupportPay as a worker benefit at Hearst.
SupportPay's latest funding round was led by venture fund HearstLabs, with additional backing from Michigan Capital Network, Victorium Capital, Rendar Capital, Connetic Ventures and Stage Next Ventures. The round was oversubscribed, as the startup's goal was $3 million.
She said SupportPay is looking to provide employee benefit services to companies across the globe, especially those that are working to provide the offerings to overlooked populations such as divorced parents and caregivers. "In reality, many companies don’t recognize these populations as those who could benefit from a targeted platform and are unaware of the (return on investment) that it can deliver to their business," Atwood said.
Atwood, who is now based in Charlotte, said she moved the company here because she believes the area is the "next up-and-coming place" for technology and startups. Its employees are currently working remotely while Atwood looks for office space in Charlotte.
SupportPay hopes to continue expanding in the human resources industry and growing its reach to the roughly 73% of the total workforce that are caregivers, and single and divorced parents.
About 75,000 parents use SupportPay across the U.S., as well as in 70 other countries. In the Carolinas, more than 3,000 parents use the platform. SupportPay can be used not only to manage children's expenses, but shared pet finances as well.
