Miami-based Erudit has raised $3.5 million in late seed funding to further develop their platform that helps companies reduce burnout, increase engagement, and improve employee retention.
Five VCs from Europe and the US participated in this funding round, many of whom were follow-on investors from Erudit’s previous early-stage round of $1.5 million. This includes DraperB1, Athos Capital, Archipelago Next and Encomenda Smart Capital, which has invested close to $1 million in Erudit overall. The team has plans to open a Series A round before the end of the second quarter of this year.
Erudit has already begun to leverage this influx in capital. The startup has made a handful of strategic hires, including Mikes Sites, the Utah-based head of partnerships & business development who exited HotDocs in 2017, and a CMO who previously led marketing for Spanish unicorn Cabify.
“I am happy that we have hired these very talented people,” Erudit’s co-founder and CEO, Alejandro Martinez Agenjo, told Refresh Miami. The team now has 26 employees and six remote jobs open, including Lead Product Designer and Senior Backend Developer.
Martinez Agenjo signaled that this fundraise will enable Erudit to double down on its sales and expansion efforts. “We have also opened a new revenue channel that is very important to us: partnerships,” he said. Partners come from a diverse range of industries including investors and the international economic development organizations. These partnerships enable Erudit to resell their artificial intelligence products.
Alongside co-founder Ricardo Michel Reyes, Martinez Agenjo has developed Erudit to share data with founders and investors about how their workforce is feeling.
Erudit collects data in the background from popular business platforms like Slack, GSuite, and Microsoft 365. It then interprets this data to determine employee sentiment. Their proprietary algorithm analyzes the content and assesses worker burnout.
Martinez Agenjo underscored that this data can be particularly useful for public sector companies, which are coming under increased scrutiny about their workforce given that levels of burnout in corporate America are at an all-time high. There’s a clear business case to this problem: workplaces with high rates of burnout are likely to have high turnover.
“Just like how a lot of people are worrying about a company’s carbon footprint, they are going to start to pull information about your human capital,” he explained. Through Erudit’s platform, executives can share tangible metrics related to their employees’ satisfaction and wellbeing. This can be a competitive advantage for certain companies.
The Erudit team launched an initial version of their platform in March 2021 and has seen rapid growth ever since. Erudit received $100,000 from Miami accelerator TheVentureCity in its pre-seed stage.
This story has been updated.
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