Brightside is accelerating plans to help employers provide financial care to employees with $33 million in Series B funding

Led by Obvious Ventures, investment supports expansion of Brightside’s proprietary financial care model to employers and the families of their employees amid record inflation and heightened economic hardship

SAN FRANCISCO, November 10, 2022 /PRNewswire/ — The bright sidethe leading financial care platform for employers, today announced that it has raised $33 million in Series B funding. The round was led by Obvious Ventures, with participation from existing investors Andreessen Horowitz (a16z) and Trinity Ventures, as well as Clocktower Technology Ventures and Chestnut Street Ventures. Bringing the company’s total financing to more than $75 millionthis investment will support Brightside’s continued rapid growth and platform enhancements, including additional AI-driven capabilities to further enhance its best-in-class product experience.

Seven in 10 Americans live paycheck to paycheck1. In addition to the profound effects it has on individuals and their families, the financial health of employees has a significant and proven impact on business performance. In fact, research has shown that financial stress impacts everything from mental and physical health to retention and productivity at work: according to a recent study2financially challenged employees are twice as likely to seek employment elsewhere, and 76% say financial worries have negatively impacted their productivity, ultimately affecting employer performance in key areas.

Brightside’s mission is to help employers improve the financial health of their workforce, thereby improving employee productivity and well-being, and supporting short- and long-term business growth. By providing a one-stop destination for employees and their families to meet any personal financial need with unbiased, individualized, and convenient support, Brightside is transforming the financial future for the historically underserved majority of Americans. Currently supporting more than 300,000 families, Brightside serves major Fortune 500 employers with frontline workers in industries including manufacturing, distribution and healthcare. Households that work with Brightside save approximately $1,200 per year, on average, and employers are seeing an 80% reduction in non-401(k) contributors. Employees who engage with Brightside also reduce their credit card debt three times more than their non-engaged colleagues, see a 34% improvement in subprime credit scores, and quit their jobs 41% less than those who don’t. don’t use the advantage.

“Traditional ‘financial wellness’ solutions have long fallen short of the frontline worker,” said Tom Spann, CEO and co-founder of Brightside. “Most employees aren’t looking for financial plans or budgeting products, and they don’t want a financial planner telling them they’re wrong. They want to know what to do now when they need it. Real problems are more than arithmetic – they’re about real life and require practical, personalized solutions from real people powered by sophisticated rule engines. At Brightside, we’ve added emergency financial care and care Welfare Fundraisers to meet people where they are in order to measurably improve the financial health of working families. With this funding, we will be able to expand our offer to more employers and families, which we desperately need in this time of inflation and economic uncertainty.

Leveraging behavioral science and proprietary financial models, Brightside combines a human approach to financial health – via dedicated financial assistants – with a technology platform to provide real solutions to alleviate financial stress for employees. Brightside responds to urgent financial needs by finding community and government assistance programs, arranging payment plans, discussing debt consolidation options, creating savings plans, and providing other practical supports and tools. and substantial ones that meet everyday Americans where they are to help them get out of the stressful cycle. from living wage to paycheck.

“Employee access to meaningful financial solutions and support is more important than ever, and Brightside is leading the charge to make a real difference, especially among underserved populations,” said Vishal Vasishth, co-founder and CEO of Obvious Ventures. “We are excited about this partnership and what lies ahead for Brightside as the company continues to scale up growth and build a new gateway to financial services for working families.”

Brightside grew revenue in 2021 by around 800% last year and is on track to grow nearly 10x in 2022. The company’s headcount has grown over 150% this year to over of 175 team members, and the company plans to hire 200 additional employees in the coming year.

For more information, visit www.gobrightside.com.

About Brightside

Brightside has created Financial Care, a new category of benefits, to help improve the paychecks of the seven out of 10 Americans who are not in good financial health3. Since 2018, its financial assistants, proprietary rules engine and innovative products have helped thousands of families save more than $1,200 annually (on average) while improving emergency savings and reducing debt, resulting in improved productivity, retention and diversity of the workforce while reducing costs of Health care. Brightside is located in San Francisco, California, Chandler, AZand Philadelphia, PA. For more information, please visit: https://www.gobrightside.com.

1 Survey conducted by OnePoll on behalf of AmeriLife, https://studyfinds.org/living-paycheck-to-paycheck/

2 PwC Employee Financial Wellness Survey 2022, https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html

3 Financial Health PulseĀ® 2022 U.S. Trends Report, https://finhealthnetwork.org/research/financial-health-pulse-2022-us-trends-report/

SOURCEBrightside

.

Add Comment