NEW YORK, NY — Canary, an emergency relief platform that makes it easy for employers to raise and distribute tax-advantaged payments for workers experiencing financial hardships, raised $1.5mm in pre-seed funding. This investment from Capital One Ventures, Financial Venture Studio, Marguerite Casey Foundation, Next Era Energy, Propel Capital, Sorenson Impact and notable angel investors will help advance Canary’s objective of making emergency payments a ubiquitous and trusted part of the employee financial health infrastructure.
Canary fills a critical gap in an employer’s toolset when it comes to helping employees lead better financial lives. While living wages and retirement/savings plans are table stakes, the reality is, many employees are still vulnerable to financial hardship when something unexpected comes up. It’s an incredibly powerful message when a CEO can say ‘don’t worry, we have your back,’” says Adam Boutin of Capital One Ventures. “The Canary team has a deep track record in understanding and promoting financial health – we are confident they can build a large business to serve this massive unmet need.”
Over half of Americans experience a financial shock each year — even in a “normal” (ie, non-pandemic year) — and over half of those households are still rebounding from the results of that shock a year later, according to Pew Charitable Trust. Meanwhile, financial stress is a major problem for employers, causing productivity losses of hundreds of millions of dollars each year. People often want to help each other in times of crisis, but managing emergency payments is administratively cumbersome and expensive.
“Canary’s technology-first approach provides an opportunity to turn a high touch, slow, painful process into a streamlined, efficient, dignified one, and Canary’s ability to put data analysis at the center of their product delivery and innovation is unparalleled,” says Ryan Falvey of Financial Venture Studio.
Since inception, Canary has worked with a range of emergency relief fund sponsors, from small to large employers, enabling over $500,000 to be distributed to individuals experiencing crises. These funds have enabled people to avoid missed rent payments, to pay for needed healthcare, and to feel less stress and be able to show up more consistently for work.
“We know that how employers treat their workforce is the #1 issue cited by Americans in defining what it means to be a just and ethical business, and that most people would prefer to work for a company that cares about their financial health. Employers of choice prioritize solutions like Canary’s,” says Canary CEO and co-founder, Rachel Schneider. “We are delighted that this investment, from a brilliant and supportive group of investors, enables us to work with more of these employers.”
About Canary: Canary is helping the 21st century social net evolve to reflect the future of work. We exist to ensure that individuals can access emergency support with dignity in times of financial need, giving them the peace of mind and confidence to recover quickly. Find out more at www.workwithcanary.com.
