A Philadelphia startup that provides analytics to HR departments has closed on a $2.5 million seed round led by Impellent Ventures and its new general partner, rapper Tariq "Black Thought" Trotter of the Roots.
Founded in 2018 by Bruce Marable, Employee Cycle helps provide HR professionals with data on their workforce. In addition to Impellent Ventures, the seed round included participation from Collab Capital, Converge VC, and angel investors and contributors. Marable, a West Chester University alum, plans to use the money to expand the company's business model and headcount.
Employee Cycle allows HR leaders to see a dashboard of headcount, turnover, recruiting, diversity, compensation and retention, but Marable will use the $2.5 million to build out an Employee Data Platform that allows employers to see more customizable and in-depth information on their workforces.
"We realized with the dashboard we could serve 80% of the metrics in use cases that customers would need, but every company has that 20% that makes them a unique snowflake," Marable said. "We need to provide custom reports for that last 20% to build custom metrics on demand. We realized that it was not only an opportunity but a responsibility to give HR leaders the highest level and quality employee data sets."
Marable wants to double Employee Cycle's headcount, which is currently at 10, by the end of 2023. The company also plans to pursue a Series A fundraising round in the next calendar year. One step toward that would be increasing Employee Cycle's customer base, which Marable hopes can happen with the expanded employee data platform.
"We are looking to work with enough customers to allow us the broadest range of use cases, so that by the time we raise our Series A we can put the gas on the fire and bring it to market," Marable said. He added that he hopes to secure the second round of fundraising in mid- to late-2023.
Trotter, who co-founded Philadelphia hip-hop group the Roots with Ahmir "Questlove" Thompson, was brought on to Impellent Ventures by Managing General Partner Philip Beauregard in May. In July, Trotter told the Business Journal that he is "looking to invest in the underdog."
In regards to his investment in Employee Cycle, Trotter pointed out the importance of elevating Black-owned businesses.
"[Marable] and his team are proof that talent and great ideas are going to flourish, regardless of the statistics," Trotter said in a statement. "It’s my goal to ensure he and other Black and Brown founders are given the financial opportunities to create lasting businesses."
