Chicago startup PerkSpot, the maker of an HR tech platform, made headlines earlier this month when it raised $50 million in venture capital funding from Susquehanna Growth Equity.
The capital was the first outside funding the startup has taken in the 12 years it has been operating. Up until now, PerkSpot CEO Jace Mouse said the company has been growing organically, supporting itself through its revenue.
So why take outside funding now? Mouse says because it not only helps the company accelerate its growth, but also provides them with experienced advisors that can guide them along the way.
“Susquehanna is a great partner,” Mouse said. “It gives us additional people at the table to help us collaborate and grow, and allows us to accelerate some of the ideas we’ve been cultivating over the years.”
PerkSpot, founded in 2006, makes a workplace benefit platform that employers can offer their employees to give them discounts at particular retailers, ranging from movie theaters and restaurants to superstores and car companies. The startup negotiates with vendors on behalf of employers and takes care of all perk-related customer service requests.
The startup’s clients include Southwest Airlines, Walgreen’s, Adventist Health System and Spotify. And most of PerkSpot’s clients don’t pay any fees to use it. Instead, to make its money, PerkSpot charges the companies that offer the discounts on their platform a fee.
"we’re looking to continue winning the right way."
“At the end of the day, for you as an employee, it means more money in your pocket,” Mouse said. “We help people save money.”
Mouse, who has worked at other tech companies like Orbitz Worldwide and Cars.com, joined PerkSpot as CEO in 2013, taking over for founder Chris Hill, who now serves as the company’s executive chairman.
When Mouse first joined PerkSpot, it had about six employees and 120 clients. But he has since helped it grow to 40 employees with about 750 clients. And Mouse has no plans to slow down. He says he wants to triple PerkSpot’s staff in the next two years, filling roles in its product and marketing departments. To accommodate its growth, PerkSpot will be moving into a new office space by the end of the year in River North, just down the block from its current office.
Mouse says there is a market for PerkSpot’s product because as more and more employers, small and large, place an emphasis on hiring and retention, the more they will need platforms like PerkSpot.
“The aspiration you have—whether it’s for a car, a home or travel—it’s great that your employer gives you a paycheck to do that, but it’s even better when there’s an extra, additional benefit you get,” Mouse said. “It helps deepen that bond and connection between the employer and employee.”
To help foster a good rapport between PerkSpot and its employees, they of course, give them all discounts to a variety of retailers through the company’s platform. But PerkSpot also provides educational sabbaticals for employees that have spent at least two years at the startup, along with options to buy equity in it.
“At the end of the day, we’re looking to continue winning the right way,” Mouse said. “That means hiring great people and taking great care of the employees we represent.”
