At the end of the year do you often find yourself or your employees with an excess of remaining PTO? A Seattle-based startup is looking to change that by compensating employees for these unused days.
On Thursday, PTO Exchange announced that it secured $5.4 million in a seed II round led by TTV Capital, a fintech-focused investment group out of Atlanta.
The HR startup markets its platform to other companies as a compensation tool to keep and attract talent. Businesses that use PTO Exchange’s platform allow employees to exchange their PTO for monetary compensation that can be used to invest in their retirement accounts, make a student loan payment, purchase flight credits or donate to an organization. Through PTO Exchange’s platform employees select how to be compensated for their unused PTO.
PTO Exchange was founded in 2013 and raised $3 million in a seed I round in 2019. According to the company’s website, it has worked with companies such as Aon, Alight Solutions and Assured Partners.
“Every year, millions of vacation days are rendered worthless to the employees who earned them. While the first option should be for employees to use all of their PTO, the next best solution is to gain value from a benefit that would otherwise expire. PTO Exchange has a massive opportunity to change the entire mindset around unused paid time off and turn it into a real asset for companies,” Sean Banks, partner at TTV Capital, said in a statement.
PTO Exchange will use the new capital to fuel growth, the company said in a prepared statement.
“We’re thrilled to have secured our next round of funding led by TTV Capital as we’re committed to owning the space and providing flexible benefits for an evolving workforce,” Rob Whalen, CEO of PTO Exchange, said in a statement. “We are firm believers in the value of paid time off, but the reality is only four out of 10 employees use all their vacation each year.”
