Cocoon announced it raised a $20 million Series A funding led by Index Ventures, with participation from First Round Capital, SemperVirens, XYZ, Magnify Ventures and a group of individual investors. This brings the company’s total funding to $26 million, including a $5.5 million seed round with Index and First Round in December 2020.
“The most common reasons for leave are deeply personal: you’re starting a family, recovering from an injury, or caring for an aging parent. Historically, employers have asked employees to spend hours on the phone with insurance representatives and wade through mountains of government and insurance claims to take time off—often during some of the most sensitive moments of people’s lives.” said co-founder and CEO Mahima Chawla.
Cocoon’s platform supports both employers and employees. On the employer side, it handles compliance and payroll complexities so that the company knows what its payroll responsibilities are, but takes all of that work off of the employer’s plate. The employee will go on Cocoon and design a leave from beginning to end via an automated process.
The new funding will be used for hiring, particularly in engineering, sales and customer success and building out additional products.
Announcement: Cocoon Raises $20M to Manage Employee Leave