Pave, a San Francisco-based startup that helps companies benchmark, plan and communicate compensation to their employees, has raised a $46 million Series B. YC Continuity led the round, which also saw participation from Andreessen Horowitz and Bessemer Venture Partners. The round comes eight months after Pave closed a $16 million Series A round. Today’s financing puts Pave’s valuation at $400 million, up from $75 million one year ago.
Pave launched with an ambitious goal: Can it measure pay across venture-backed tech companies in real-time and help startups move their comp table off of spreadsheets? AngelList and Glassdoor have already tried to build a similar benchmark-worthy data set, but Pave may have a built-in advantage over the companies that tried to fix the same problem before. Y Combinator, which helped incubate Pave and is now leading its most recent round through its later-stage capital vehicle, is one of the largest startup accelerators in the world. Of Pave’s 900 customers to date, one-third comes from Y Combinator, and CEO Matthew Schulman only sees that number growing.
“Having YC’s deep support of Pave as the YC-stamped leader in the burgeoning [compensation technology] industry is and will continue to be game-changing for our distribution and ability to have ample data coverage in our benchmarking product,” Schulman said. He compared Pave’s distribution trajectory to what fintech company Brex, also backed by Y Combinator Continuity, managed. The founder estimates that 60% of YC companies are active Brex customers.