Revelio Labs Raises $4.0 Million in Seed Capital

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New York City based provider of labor force data and analytics, Revelio Labs, has recently announced it has closed a seed capital investment round of $4.0 mln led by Barclays and K20 Fund.

Background on the Capital Raise

Revelio Labs’ recent $4.0 seed investment round was led by Barclays and K20 Fund, with additional funding coming from NYU Ventures, BDMI, BoxOne Ventures, DataFrame Ventures, 840 Venture Partners and industry veterans, including Michael Recce and Jeremy Baksht.  This investment round values Revelio Labs at a $29 million, and is expected to be used to expand Revelio Labs’ offering beyond investment management, to users in corporate HR and strategy.

Founded in 2018, Revelio Labs is a workforce intelligence company.  The firm absorbs, extracts, and standardizes data from millions of public employment records to create the world’s first universal HR database.  Customers including investors, corporate strategists, HR teams and governments use Revelio Labs’ data and analytic tools to better understand the workforce dynamics of specific companies and their peers.

Ben Zweig, CEO of Revelio Labs, commented, “At Revelio Labs, our mission is to create a clear way to understand workforce and talent across companies. By providing a shared source of workforce intelligence, we see a world where the allocation of human capital is as scientific and transparent as the allocation of financial capital, resulting in a more engaged and better performing workforce for all companies and individuals. We’re grateful that Barclays, K20 and our other investors continue to recognize our potential, and we look forward to putting this new capital to work to further enhance our product to best serve our customers.”

Joe Lieberman, Managing Partner at K20 Fund, explained the rationale for their investment in Revelio Labs saying, “It is a particularly unique and challenging environment for companies and employees, and to attract and retain the best talent, employers need to understand the holistic workforce landscape. Revelio Labs is in a prime position to help bridge this data gap in the labor market, and we’re excited to see how Ben and his team expand their offering with this new round of funding.”

Our Take

Revelio Labs initially gained traction for its universal HR database from institutional investors who wanted to better understand the labor force dynamics of the companies they were looking to invest in and their peers.  However, Ben Zweig and Yedidya Gorsetman founded the business to help public and private companies better understand their own workforces in a more granular way than is currently available, as well as the workforces of their competitors.  This current investment round should enable Revelio Labs to enhance their product offering to better serve corporate users.

Revelio Labs’ planned move to serve corporate users makes considerable sense as this market is both larger and stickier than the more fickle buy-side.  This move is also consistent with the trend among a growing number of companies that are making more data-driven management decisions.  In fact, a number of alternative data firms including 1010data, M Science, Earnest Research, YipitData, Dataminr, and Eagle Alpha have all been marketing alternative data solutions to nonfinancial corporates for some time to help them better understand consumer demand, competition, and underlying economic trends. 

However, a successful expansion into the corporate market requires different sales strategies, product changes, and distinct pricing.  Hence, the recent capital raise makes sense.  The big question we have is whether a $4.0 mln capital raise will be enough to enable Revelio Labs to pivot in order to gain traction in the corporate space?   It will be interesting to see how successful Revelio Labs is with this shift.

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About Author

Mike Mayhew is one of the leading experts on the investment research industry. In addition to founding Integrity Research, Mike is on the board of directors of Investorside Research Association, the non-profit trade association for the independent research industry, and a frequent speaker on research industry trends and developments. Mike has over thirty years of research industry experience. Email: Michael.Mayhew@integrity-research.com

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