Berlin-based startup HeavenHR, a cloud-based HR management platform for SMEs, has closed €6 million in Series A funding from Target Global and Open Ocean.
Operating a rather subtle freemium model, the HR platform’s core functions, such as digital contracts, electronic personnel files, absence management and time tracking are free (similar to London’s CharlieHR), but HeavenHR charges for additional services such as payroll, benefits, pension and insurance management. The pension aspect is reminiscent of London/Tel Aviv-based Hibob, which recently launched with $7.5 million in backing in a round led by Silicon Valley VC Bessemer Venture Partners. There’s a lot of money to made in workplace pension enrollment by effectively operating as a pension broker, and a new breed of HR management startups are piggybacking pensions and, similarly, insurance. Come for the cloud-based HR tools, stay for the pensions and insurance, seems to be the mantra.