The fundraise was led by the Pan-European VC Breega with co-investment from the 200M Fund. It is the largest pre-seed round ever raised in Portugal and one of the largest in Europe.
Portugal-based, Remote-first, April 14th 2021 – Coverflex, the flexible compensation solution that allows companies to reduce costs and maximise their people’s earning potential, is announcing a €5 million fundraise. The round was led by Breega, followed by the 200M Fund and other local champions. This first raise will help fuel the startup’s ambition to become the market leader in Portugal, finance their international rollout and enable them to recruit further talents for their product, design and engineering teams.
“The way we work is changing, but compensation — salary, bonus, equity and benefits — has not evolved for decades. The current rigid, one-size-fits-all approach is outdated and fails to satisfy the needs of the modern workforce.” Miguel Amaro, Coverflex Co-Founder and CEO says. “As entrepreneurs, having built and directed companies in different industries, we came up against the same problems time and again when dealing with employee compensation: multiple providers, a lack of transparency, reliable information and flexibility created a less than optimal experience for both us as employers and our teams.”
Coverflex is changing that. Their all-in-one platform enables all companies — regardless of their size — to design, consolidate and personalise their compensation offers beyond salary with health insurance, meal allowance, fringe benefits and discounts. Thanks to their solution, companies can supercharge their employee benefits while saving both time and money. With access to a VISA card, an app and company-defined budgets and options, each employee can choose benefits adapted to their personal needs. Coverflex calls this “Compensation as a service”.
The startup is hoping that their personalised and easy-to-use employee compensation service will reinforce their clients’ attractivity, giving them the competitive edge and enabling them to better attract and retain their most valuable asset: people.
By aggregating multiple providers, helping companies to cut costs with fiscally efficient benefits and giving employees more value while improving their personal financial literacy on compensation and benefits, Coverflex is transforming traditional compensation into a tool for strengthening working relationships.
Over 3000 employees from big-name companies such as PwC, Bolt, Emma – The Sleep Company, Landing.Jobs, Startup Lisboa, Rows, Paul Stricker, Velocidi, Dott and Unbabel are now using Coverflex’s solution.
“Offering some kind of benefits policy to complement salary has always been a part of our goals — it’s a fiscally efficient solution that makes sense for us as a company. But we were wasting a lot of time on day-to-day administrative tasks and managing the details”, says Rita Franca, Unbabel’s Head of People. “Coverflex changes that. It’s a very easy solution to implement, understand and manage, which is such a relief. We know we’re giving our people the best we can while managing our resources efficiently.”
“This round validates the market opportunity. It confirms that our focus on adapting human resources processes to the current demand for a more personalised compensation experience is more than relevant today”, says Nuno Pinto, Coverflex Co-Founder and CBO. “We’re thrilled with the prospect of helping as many companies and employees regardless of company size or sector”, he adds.
“We invest in founders we believe in and in projects that excite us. Coverflex is going to be a game changer. When we finance a project, we’re investing in the future and so we have to be mindful of the impact the project will have”, says Ben Marrel, Co-Founder of Breega and Coverflex board member. “We didn’t want to miss out on the opportunity to back such a revolutionary product, especially in a problem space which has become so important after a year like 2020”, he adds.
Coverflex Is Hiring to Double Remote-First Team
Remotely founded in 2019 by Luís Rocha (ex-TUI Musement), Miguel Santo Amaro (ex-Uniplaces), Nuno Pinto (ex-Kide) and Rui Carvalho (ex-Unbabel), Coverflex is focused on building a strong company culture around a global perspective, embracing the new challenge of remote working as part of their DNA.
This funding round will allow Coverflex to continue growing their team of 30, who have been working remotely since day one. They are planning to double their headcount by year end, mainly in their product, engineering and design teams.
“From the very beginning, we’ve been focused on creating an experienced and solid team that is aligned with Coverflex’s mission and goals. Building a project from the ground up requires teamwork and an environment where everyone is collaborating and delivering on a shared strategy. We always look for the best people in each field, those who stand out. This mindset is going to define our direction over the next decade”, Miguel Santo Amaro, Coverflex Co-Founder and CEO, shared.
