July 28, 2011 § Leave a comment
A significant pain point for SMB owners is the need to manage the complexities of human resources while juggling the demands of running an enterprise. The biggest challenge many small business owners face is keeping their company going and growing. To do that successfully, one needs to leverage a combination of technology and domain expertise to reduce costs and optimize cycle times.
Leveraging the cloud is a major component of the future of functional processing for small business. Leading providers of functional domain applications are migrating to the cloud for both storage and processing of critical SMB data. TribeHR, a recent investment of Apricot Capital, provides a logical migration path to the cloud with imbedded process management for Human Resources. The platform simplifies and automates the task nature of managing the HR process while empowering employees allowing the employer to focus on people rather than process.
When Apricot makes an investment we follow a simple methodology. Define the need, Define the speed.
Apricot saw the value in this investment as a gateway to a largely untapped market segment, small business. The power of the cloud is scale. Cloud eliminates internal technology headaches so management can focus on the real problems facing their business.
From a market sizing perspective, small business owners will hire and sadly fire an estimated 5 million employees over the next 3 years. Most small business owners have very little or no HR management process or best practices in place. Therefore, the need for a subject matter expert in the HR function with an integrated system and process made a lot of sense to us.
Small business needs to ramp up new processes quickly so they don’t interfere with the operations of the business. First, TribeHR helps companies quickly ramp their HR process. Next, management showed the ability to quickly adapt to emerging client feedback and integrate updates in a structured way into their product set. Finally, the company needed to be a first mover in a space that is largely unoccupied. Speed to market is essential for the company to succeed and we felt our investment would help lead them faster down that path.
On July 27, 2011, TribeHR announced that it had secured a $1 million round of seed financing from Matrix Partners. We are pleased to have helped TribeHr as an Angel and excited for the partnership that Matrix brings to the future of their business.