US-based lifestyle benefits startup Fringe, which offers companies a personalized marketplace of perks that people really want, raised US$ 2.2 million in seed funding on 24 February 2021.
Investors: The funding round was led by Sovereign’s Capital, with participation from Felton Group, Manchester Story, the Center for Innovative Technology and angel investors, including Jaffray Woodriff. Fringe’s longtime advisor William Boland, the senior director of Corporate Development and Strategy at Mission Lane joined its board of directors. The startup’s total funds stand at US$4 million.
Purpose of funding: The funds raised will be utilized by Fringe to support its growth. It is planning to expand its team and update its marketplace website to include things like new Slack integrations, improved navigation, automatic point gifting, charitable giving and more.
Founded in 2018 by Andrew Dunlap, Chris Luhrman, Isaiah Goodall, Jason Murray and Jordan Peace, Fringe offers companies a personalized marketplace of perks that people really want such as Netflix, Uber, Airbnb, DoorDash, Headspace, Talkspace and many other apps. The pandemic has impacted the way we work and also the way employers give perks to attract new talent. Apart from gym membership, child care, free lunches etc, Fringe believes that companies need to offer their employees something more than that. Co-founder of Fringe, Jordan Peace landed on the idea of providing employees with subscription services. These services are used by people all the time but sometimes feels out of budget.
“Companies are spending a lot of money on traditional benefits, $800 – $1,000 a month per person. But the perceived value for most employees is relatively small, given the cost. I started thinking about what could [companies] offer employees that would be a pretty low actual cost, but a really high perceived value?” said Fringe CEO Jordan Peace.
Employers can sign up in the Fringe platform at a starting cost of US$ 5 per employee per month. They place the amount they would normally spend on lifestyle benefits into the Fringe accounts of their employees. This amount is converted to points that can be spent on any of the apps and services.
The Fringe marketplace offers a range of apps like streaming services – Netflix, Spotify, Disney+ and Audible, virtual fitness, virtual coaching and wellness, online therapy like Talkspace, food and grocery delivery – Grubhub, Uber Eats, Instacart, and Shipt and much more.
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