Canada’s first cloud-based human resource and benefits platform announced yesterday that it has received $5 million in seed financing.
The fintech start up, Collage, said that it had received the amount from venture capital firm Diagram. Collage hopes to automate key segments of the insurance industry, particularly the human resources industry.
Learn more about human resources insurance here.
Formed last year, Collage provides its software to business clients for free and earns income through commissions from insurance companies as a registered insurance broker. According to BetaKit, clients who have already enrolled in benefits plans can have it transferred into Collage’s platform at no extra cost, allowing clients to manage their employees’ plans online.
By aiming to streamline and modernize the human resources industry, Collage hopes to make the process and benefits accessible – particularly to small businesses.
Diagram chief executive officer Francois Lafortune told Reuters that the multibillion-dollar market is “under-served and growing”.
“It’s big enough in Canada to make it a substantial business,” Lafortune said, “but the real prize here is to go broader.”
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Elijah Moore, the CEO and co-founder of Collage, said that the start-up is using Canada as a “proving ground” to cooperate directly with insurers in finding new ways to approach HR and benefits management.
“Instead of saying, ‘Hey, you guys are old and stodgy, and you move slow,’ we’re actually trying be cooperative,” Moore told Reuters.
The company has plans to introduce insurance products not yet available in Canada or the US.
Diagram is primarily financed by Portag3 Ventures, itself sponsored by Power Financial and its subsidiaries. Power Financial vice-president Paul Desmarais III of the influential Desmarais family was tapped to serve as chairman of Diagram.
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