Sorbet, an Israeli financial services startup that helps companies de-risk themselves against accrued paid time off (PTO) by employees, secured US $15 million in a funding round, announced on June 24, 2021. Led by Dovi Frances’ Group 11, the investment round came just months after Sorbet’s initial seed round of US $6 million in April.
How Sorbet works
Sorbet says it eliminates the burden of Paid Time Off from employers, enabling employees to ‘spend’ it in offers and other types of deals, giving employers far more control over the whole process and the ability to forecast. The startup does this by buying out PTO liabilities from employees and loading the cash value of the PTO on prepaid credit cards. The startup then refinances these liabilities for employers, hence the forecasting advantage.
Dovi Frances, Founding Partner, Group 11, said, “At Group 11, we pride ourselves in our unique ability to uncover the unicorns of tomorrow. Veetahl and the team did something exceedingly difficult to uncover a massive market inefficiency hiding in plain sight. With a US $270B market opportunity, it was crystal clear to me this was the time to push forward and not look back.”
Co-founder and CEO of Sorbet, Veetahl Eilat-Raichel, said, “It’s clear that we’re in the center of a tectonic shift in employer-employee dynamics and with inbound global interest surpassing our wildest expectations, I had the great opportunity of picking and choosing the best investors to help us expand and accelerate. I can think of no better partner than Dovi and the entire Group 11 team to join us, and I am excited and humbled to have them alongside our already stellar group of investors.”
Sorbet is a disruptive Fintech solution that offers an optimal way for professionals to use unusable, accrued Time-Off more effectively while providing their employers with the complete financial flexibility to reduce vacation accruals, save on financing costs and optimize their cash flow.
Founded in June 2019 by Eliaz Shapira, Rami Kasterstien, and Veetahl Eilat-Raichel, Sorbet has its headquarters in Tel Aviv, Israel. The startup offers various features such as cash-out benefit, liability value at current salary levels, renegotiation, refinance & restructure the liability, and tax optimization.
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