Overview

Cocoon provides a software solution for managing employee leave in the Human Resources technology market. Its platform automates the processes related to compliance, claims, and payroll, making it easier for HR teams and employees to navigate leave management. The software ensures accurate calculations of employee eligibility under the Family and Medical Leave Act (FMLA) and various state leave laws, while also sending out necessary notifications. Cocoon's product allows employees to plan their leave privately, file claims with ease, and track their pay accurately, which helps save HR teams significant time and resources. Unlike many competitors, Cocoon focuses on simplifying the leave process and reducing the risk of compliance issues, which can lead to substantial cost savings for companies. The goal of Cocoon is to enhance the employee experience regarding leave management while providing HR teams with an efficient tool that supports their operations.

Simplify's Take

What believers are saying

• Cocoon benefits from increased demand for remote work solutions in HR tech.
• AI integration enhances Cocoon's compliance and payroll automation capabilities.
• Growing focus on mental health boosts demand for Cocoon's comprehensive leave management.

What critics are saying

• Increased competition from HR tech companies like Gusto and Zenefits.
• Data privacy concerns over sensitive health and leave information management.
• Economic downturns may reduce HR budgets for new software adoption.

What makes Cocoon unique

• Cocoon automates compliance, claims, and payroll, reducing HR workload significantly.
• Founded by ex-Stripe and Square employees, Cocoon leverages deep tech industry expertise.
• Cocoon partners with top employers like Carta and Khan Academy for tailored leave solutions.

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Funding

Total Funding

$27.7M

Above

Industry Average

Funded Over

2 Rounds

Notable Investors:

First Round CapitalY Combinator

Notable Investors:

First Round CapitalY Combinator

$20,000,000

Series A

Sep 2021

Series A funding typically happens when a startup has a product and some customers, and now needs funding to scale. This money is usually used to grow the team, expand marketing, and improve the product. Venture capital firms are frequently the main investors here.

Series A Funding Comparison

Above Average

Industry standards

Ind Avg. $15M

$3.7M

$5M

$8.2M

$15M

$20M

$100M

View all funding stages