Blossom Capital leads $12m round for Localyze

Localyze, a mobility platform for employee relocation and internationalization, has raised $12 million in funding.

Localyze, a mobility platform for employee relocation and internationalization, has raised $12 million in funding. Blossom Capital led the round.

PRESS RELEASE

Hamburg, Germany, 7 July 2021 — Localyze – the global mobility platform that makes the often laborious and costly process of employee relocation and internationalisation faster, easier and more efficient – has raised $12M in early-stage funding, led by Blossom Capital.
The funding, which comes off the back of record 300% revenue growth for Localyze in Q1 2021, also saw participation from previous investor Frontline Ventures, and follows Localyze’s participation in the Y Combinator Summer accelerator programme in 2019. A number of angel investors have also joined the round including Andrew Robb (ex-Farfetch), Des Traynor, co-founder and CSO at Intercom, Hanno Renner, co-founder and CEO at Personio, David Clarke, former CTO at Workday and Michael Wax, CEO of Forto.

Localyze was founded in 2018 by Hanna Asmussen, Lisa Dahlke and Franzi Löw who, between them, had seen first-hand the difficulties and pain-points involved with relocating, having lived and worked across a combined total of 15 countries.

The trio set up Localyze to simplify employee relocation and capitalise on the decentralisation of the workforce with a dedicated software solution. Localyze does this by streamlining the entire migration process – from support with visa applications, work and residence permits and registration to housing and banking in the destination country – for high-growth enterprises including Free Now, Trade Republic, Babbel, Thoughtworks, Tier Mobility, DeepL, Forto and Personio. These enterprises have hundreds of employees from dozens of different countries that need to manage their paperwork between embassies, labor agencies, foreigners’ offices and the local town halls.

Beyond employee relocation, Localyze additionally makes it easier for companies to operate across borders. It supports employers with opening new locations, business trips, temporary mobility and remote employment assessments. All while allowing HR departments to monitor each step and ensure compliance.

Localyze has already helped more than 2,000 people from over 100 countries relocate internationally and, as the world opens back up again following the pandemic and global mobility heads towards pre-Covid levels, Localyze is seeing employer demand accelerating for its services, growing on average at more than 30% month-on-month. As a result of this increased demand, Localyze will use the funding to expand into new regions – starting with starting with the major hubs for international talent, in Ireland, Spain, Portugal, the Netherlands and the UK – to help it serve even more high-growth companies with offices across Europe.

Localyze is committed to showing the world that Europe is a welcoming continent. To achieve this aim they co-created, alongside EU parliamentarian Damian Boeselager, the Open Employers Pledge to attract, retain and relocate global talent in Europe’s labour market which will in turn help European companies fulfil their entrepreneurial mission.
Hanna Asmussen, Co-Founder and CEO of Localyze said; “Having gone through the challenges of relocation as individuals, we built our solution to help simplify the process for employers relocating talent to Europe. Since Covid, we’ve built this out to further support these employers with managing the new working paradigms popping up globally. Our customers’ employees are taking WFH beyond international borders, and we plan to be the go-to solution that allows companies to compliantly operate a decentralised, international setup that can win them the best talent.”

The resurgence of employee mobility in the wake of Covid
Before Covid, almost two million people relocated for work within Europe each year and figures suggest that employee relocation is set to increase by 50% as we emerge from the pandemic. Localyze data has additionally shown that 85% of HR leaders are planning for a hybrid approach post-pandemic, with a mix of in-person hubs and remote work, and that most companies won’t go fully remote. This means locations will remain a major part of companies’ people strategy.

As it was pre-Covid, the biggest hurdle in enabling this free movement of talent and skills across the continent are the multifaceted border controls, visa conditions, working restrictions and housing. Yet the new hybrid approach complicates things further. Companies are expected to internationalise earlier, as they move to a decentralised model to meet employee demand for flexibility. HR departments now need to adapt their processes to manage increased international mobility, compliance, communications, and costs.

As experts in this field, Localyze assists with each of these steps.
“As a company we had to adapt quickly to the demands of our current and future workforce during the COVID-19 pandemic,” said Philip Schröer, Head of People Services at Free Now. “We partnered with Localyze as a core enabler of our talent strategy, using their solution to address the new demands for location flexibility of our 2,000+ employees.”

“Access to the very best talent is a huge consideration for businesses of all sizes, but for high-growth enterprises, it’s absolutely crucial that nothing gets in the way of being able to tap into the skills and abilities of staff anywhere in Europe,” said Ophelia Brown from Blossom Capital. “Localyze removes all of these barriers. Instead of being bogged down by the costly and lengthy relocation processes, enterprises can concentrate on the job at hand and their employees can feel confident and secure that their relocation – often one of the biggest decisions they’ll have to make in their career – is dealt with efficiently and without a hitch.”

Finn Murphy of Frontline Ventures added: “It sounds counterintuitive—a startup that helps employees relocate seeing exponential revenue growth while borders remain closed. But it’s true: Localyze reached profitability and saw revenues triple this year as companies take aim at a hybrid workforce approach post-COVID. We’re thrilled to support them as they go after this opportunity across Europe.”

Localyze will use the additional capital to open new markets and accelerate product development and executive recruitment across engineering, product design and marketing to meet growing market demand for digital solutions. “We want to be the go-to company for global mobility, and a broader geographic coverage is the biggest lever for that”, says Asmussen.

About Localyze:
Localyze (https://localyzeapp.com/) offers a software solution that simplifies all aspects of employee mobility, from business trips to temporary transfers to full-scale relocations. CEO Hanna Asmussen, COO Lisa Dahlke, and CTO Franzi Löw created Localyze in 2018 after personally learning the pain of relocating from living between a combined 15 countries. After going through Y Combinator (S19) and raising investment from Frontline Ventures, Localyze’s all-in-one software now simplifies the relocation process for HR leaders at high-growth tech companies across Europe. Reach out at sales@localyzeapp.com to schedule your free workforce mobility assessment.

About Blossom Capital:
Launched by Ophelia Brown, one of Forbes’s 30 under 30 rising stars, Blossom is a VC fund that connects US knowhow, expertise, networks and ambition, with Europe’s unrivalled opportunity. Blossom concentrates on early stage investments in consumer and enterprise, particularly focusing on finance, design, marketplaces, travel, developer-focused tools, infrastructure and API-first companies. Based in London, but covering the whole of Europe, Blossom competes with the top-ranked VC investors in Europe and the US to champion the next European startups capable of making it on the global stage. Find out more at www.blossomcap.com

About Frontline Ventures: Frontline Ventures is the venture firm for globally ambitious B2B businesses on both sides of the Atlantic. Frontline Seed strengthens and speeds up ideas at inception across Europe. FrontlineX is a go-to-market first, capital-second fund for fast and frictionless US–EMEA expansion. Today, Frontline has €225M ($275M) funds under management and numerous exits, including Pointy (acquired by Google), Logentries (acquired by Rapid7), and Orchestrate (acquired by CenturyLink).