Remote Raises $35M to Simplify Global Payroll & Benefits

This year has seen a widespread shift to remote work as organizations globally strive to limit the spread of Covid-19 by minimizing face-to-face contact among employees. This change has also brought renewed attention to the complexities of managing employees who may not work from a traditional office location, and who could even reside in different countries. Today, a startup focused on simplifying the management of these distributed teams – aptly named Remote – is announcing a substantial new funding achievement.

The company has successfully completed a $35 million Series A funding round, spearheaded by Index Ventures, with additional investment from Sequoia Capital and prominent angel investors such as Aaron Levie, Zach Weinberg, and Kevin and Julia Hartz. This brings the total funding secured by Remote to $46 million, following an earlier $11 million seed round raised earlier this year after the company’s founding in 2019.

Remote intends to utilize this funding to broaden its operational reach to 30 countries, expanding from its current presence in 17, fueled by a consistent doubling of its customer base each month since its launch.

The challenge and opportunity that Remote addresses is well-known to any organization with a geographically diverse workforce.

Companies often identify ideal candidates, who, if located nearby, would seamlessly integrate as full-time office employees. However, when these individuals reside in other locations, navigating the intricacies of employment terms can be problematic, often resulting in them being compensated as freelancers without the benefits and protections typically associated with full-time employment – such as maternity leave, redundancy provisions, or company equity. This situation raises important questions for both employers and employees: is the employer legally obligated to provide full benefits? Should the employee seek alternative employment for a more comprehensive and secure package?

Remote was specifically created to resolve these issues and more. It functions as an intermediary, collaborating with both the company and the employee within the employee’s local market to determine the most appropriate employment structure – whether as a full-time employee or a permanent contractor – and then manages payroll and related services through a network of locally established legal entities. These entities handle a comprehensive range of responsibilities, including employer of record services, payroll processing, benefits administration, tax compliance, and visa/immigration support when required, alongside a platform for managing contractor payments.

According to Job van der Voort, the CEO, Remote serves clients ranging in size from 10 to several thousand employees. “We are largely size-agnostic,” he stated.

Remote was co-founded by two individuals who relocated from Europe to San Francisco and have direct experience with the complexities and advantages of managing remote workforces.

Van der Voort previously served as the VP of Product at GitLab, where he oversaw its expansion from 5 to 450 remote employees (and GitLab is now a Remote customer). CTO Marcelo Lebre most recently held the position of VP of Engineering at Unbabel – another company focused on overcoming international communication barriers.

Remote is one of a growing number of startups that have secured significant funding this year to provide enhanced services for businesses managing international workforces. These include Deel ($30 million raised in September), Papaya Global ($40 million also in September), Lattice ($45 million in July), Factorial ($16 million in April) and Turing ($14 million in August with another round anticipated), among others.

Other companies, such as Gusto and Rippling, currently focus on domestic payroll (competing with established players like ADP) but are clearly considering expansion into international markets and global workforces to support their long-term growth. Some, like Deel, are direct competitors, while others operate in related areas and could potentially become more competitive in the future.

Van der Voort emphasizes that Remote’s distinguishing factor (aside from its memorable branding) is its commitment to building all aspects of its business internally.

“Many companies promote similar offerings – payroll solutions for remote teams – but they typically rely on third-party providers, which we do not,” he explained.

This approach was a key factor for investors as well. Hannah Seal at Index noted that her firm has been investing in Remote since the pre-seed stage, and this relationship has proven beneficial in other investment decisions.

“When we initially invested in Remote, they were based in Portugal, and we never met them in person,” she shared, noting that the Zoom pitch predated the pandemic and was a result of the company’s inherent remote setup. “This presented some challenges, but we are successfully navigating them and are increasingly open to investing in exceptional founders, regardless of their location.”

“The future of work will undoubtedly involve a significant number of remote employees. Remote is addressing a critical point of friction in the global economy by expanding access to talent for businesses and opportunities for individuals,” stated Ravi Gupta, a partner at Sequoia Capital, in a press release. “We are pleased to support Remote in its mission to reshape the global talent market.”