Sorbet Raises $15M to Revolutionize Paid Time Off

Sorbet Secures $15 Million in Funding to Revolutionize PTO Management

Sorbet, a U.S./Israeli startup focused on mitigating the financial risks associated with accrued paid time off (PTO), has successfully raised $15 million in a funding round. This investment was spearheaded by Group 11, led by Dovi Frances, following a $6 million seed round completed just last April.

Addressing the Burden of Accrued PTO

Sorbet’s core function is to alleviate the complexities of PTO for employers. The company enables employees to utilize their accrued PTO for various offers and deals.

This approach grants employers enhanced control over PTO processes and improves their ability to accurately forecast future liabilities. The system operates by acquiring PTO obligations from employees.

The monetary equivalent of this PTO is then loaded onto prepaid credit cards. Subsequently, Sorbet provides employers with refinancing options for these liabilities, resulting in improved financial forecasting capabilities.

Leadership Perspectives

According to Veetahl Eilat-Raichel, founder and CEO of Sorbet, a significant shift is occurring in the relationship between employers and employees.

She stated that global interest in the company has surpassed initial projections, allowing for a selective approach to investor partnerships. Eilat-Raichel expressed enthusiasm about collaborating with Dovi and the Group 11 team, recognizing their value as partners alongside existing investors.

Group 11's Investment Rationale

Dovi Frances, founding partner at Group 11, highlighted the firm’s ability to identify promising emerging companies.

Frances emphasized that Sorbet’s team has successfully identified a substantial market inefficiency that was previously overlooked.

With a potential market opportunity estimated at $270 billion, Frances affirmed that the timing was ideal to invest and support Sorbet’s continued growth.

Key Benefits of Sorbet's Approach

Enhanced employer control over PTO liabilities.
Improved financial forecasting accuracy.
Flexible PTO utilization options for employees.
Refinancing solutions for employers.

Sorbet is positioned to significantly impact how companies manage and account for employee PTO, offering a novel solution to a long-standing financial challenge.