Catch, a benefits platform made specifically for gig workers, announced Friday that it raised $12 million in fresh funding. The Series A was led by Crosslink Capital, and comes on the heels of the two-year-old startup’s recently announced partnership program and product rollout, which expands its offerings to include independent disability insurance and an automated health savings account (HSA).
Research indicates that nearly 40 percent of U.S. workers are freelancers, and the industry is estimated to be worth more than $1 trillion. Much of this market growth has been the result of the pandemic, prompting other independent worker-focused startups like mobile bank Lili and services provider Thumbtack to achieve big success in recent months.
Meanwhile, Catch is designed to make sure that all the benefits ordinarily not given to gig workers — things like retirement investment, health and dental insurance and tax withholding — are available at an affordable price. The company likens itself to other similar payroll services like Gusto and Rippling, with the added benefit of offerings like low-cost health insurance, quarterly tax payments and automated tax withholding — essentials for folks wanting to not just survive, but thrive in the gig economy.
“As the next generation workforce run full speed at the opportunity to be creators and independents, we have to modernize the infrastructure to provide benefits,” Catch co-founder and CEO Kristen Anderson said in a statement. “No matter how you work, you should have easy access to high quality tools to take care of your taxes, retirement and health insurance.”
Catch also says it works with businesses in “underserved” sectors like retail, food and beverage and beauty in order to help them offer direct-to-employee benefits, giving them a competitive edge in attracting talent.
Now, with this fresh funding in its coffers, Catch plans to expand into more distribution partnerships and relocate from Boston to NYC, where it currently has several open tech positions available.
