Justworks, a human resources tech startup, claims it's the "anti-Zenefits." It's doing things the right way, following the rules and managing its growth in a reasonable manner, they'll tell you.
That's why they're confident in their recent Washington, D.C. expansion. The New York-based startup aims to create a more intuitive process for employees to access their benefits. To set up an account, an employer simply has to invite their employees to the platform and from there employees can easily access everything from medical insurance and payroll to commuter benefits and 401(k) accounts in one central location. Justworks views their competition as Zenefits, ADP and Paychex. Zenefits has faced several scandals in the past year, including investigations with both California and Washington State insurance regulators.
"D.C. seemed like such a natural fit," said CEO Isaac Oates. "It's a very cosmopolitan city. It seemed like a great place for expansion."
With the D.C. expansion also comes a partnership with startups inDinero and LawTrades, which provides accounting and legal services, respectively, to small businesses. This way when their customers call and mention any accounting or legal issues, their customer service representatives will be prepared to talk about their partners' services.
"Basically, the way we look at it, we are not going to be everything to a business," Oates said. "So to be able to find partnerships with people in the accounting and the law space helps us."
This isn't Oates' first foray in entrepreneurship. In 2009, he sold his first startup, an advertising platform called Adtuitive, to Etsy for an undisclosed amount. Now, he's taken that success and brought it to Justworks, which raised $33 million in a Series C round led by Redpoint Ventures earlier this year.
The D.C. launch just means that Justworks is prepared for more D.C. startups and businesses to join them on their platform, so they're including a few healthcare options that are specific to the DMV and other area preferences.
"The one thing that has become more and more apparent as we spend the time in the market is that there’s a huge opportunity in D.C. both for entrepreneurs and for businesses that want to serve them," Oates said. "We’re excited to be a part of it."
