The Shift to Remote Work and Firstbase's Solution

The likelihood of a return to regular commuting is, for many, effectively nonexistent. Traditional commuting proves to be an inefficient use of time. While opinions diverge between employees and employers regarding remote work arrangements, the COVID-19 pandemic has fundamentally altered the professional landscape, and a return to pre-pandemic norms is unlikely.

Firstbase Secures $13 Million in Series A Funding

Recognizing the growing trend of remote work, Firstbase is developing a combined software and hardware solution designed to equip remote employees with the necessary tools and support. The company recently announced the successful completion of a $13 million Series A funding round, spearheaded by Andreessen Horowitz.

B Capital Group and Alpaca VC also participated in this investment. TechCrunch initially reported on Firstbase’s progress when the company was part of the Acceleprise accelerator program in mid-2020.

From Fintech to Remote Work Infrastructure

Firstbase’s current focus wasn’t its original intention. Like many startups, the company evolved from an initial concept. Originally focused on fintech, Firstbase transitioned to a remote work model in 2018.

However, the initial experience with remote work was challenging, according to Firstbase co-founder and CEO Chris Herd. Procuring and managing technology for remote workers, as well as reclaiming it upon employee departure, presented significant hurdles.

Pivoting to Meet a Growing Need

As the fintech venture faced resource constraints, the company identified the potential of its internally developed technology for supporting remote staff’s hardware and software requirements. This realization prompted a pivot in late 2019.

By March 2020, Herd reported a waitlist of 600 companies, a number that has since experienced substantial growth.

Firstbase’s Dual-Service Offering

The company’s offering comprises two key components. It provides a software platform for companies to track and manage hardware assets utilized by their remote workforce.

Additionally, Firstbase offers a hardware service that includes pre-installation of software on devices, shipment to employees, and remote IT support. Customers have the flexibility to subscribe to the software service on a SaaS basis, or to utilize both the software and hardware solutions.

Revenue Streams and Growth Potential

Firstbase generates revenue through two distinct channels. The software component provides recurring subscription income, while the hardware service yields gross profit. The hardware aspect of the business is relatively new, with customer onboarding beginning in November of the previous year.

Herd estimates the cost of equipping a remote worker can range from $2,000 to $5,000, but Firstbase offers customers the option to pay these costs through a series of fixed installments.

Future Plans and Expansion

The company, currently employing ten individuals (including three part-time staff), aims to expand its team by a factor of four or five this year. Consistent with its remote-first philosophy, Firstbase will not limit its recruitment to a specific geographic location.

Planned hires will focus on bolstering the sales organization, and the new capital will be used to develop more robust software features tailored to the needs of larger enterprise clients.

Looking Ahead

The success of Firstbase’s Series A funding will be a key indicator of its potential for scalability. It remains to be seen whether the company will attract further investment or potential acquisition offers before the end of the year.

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