Employee financial wellness startup Tapcheck lands $20m Series A

• Los Angeles-based company offers employers a way to let employees access paychecks before payday
• Tapcheck was founded in 2019
• PeakSpan invests in software businesses

Tapcheck, an employee financial wellness and earned-wage access platform, has secured $20 million in Series A funding. PeakSpan Capital led the round.

The company, based in Los Angeles, will use the funding to further its mission to improve business performance by empowering employees with financial wellness.

“We’ve always believed that businesses could benefit when their employees’ financial well-being was taken care of — something we saw firsthand in other businesses we founded and worked at,” Ron Gaver, CEO and co-founder of Tapcheck, said in a statement. “Our strategy is clearly resonating, and we’re excited to put this capital to work to support more companies and their people.”

Tapcheck was founded in 2019, when its husband-and-wife founding team were inspired to find a way to help employees across the country access their earned wages before payday. They saw firsthand how cash advances relieved the stress that usually comes with living paycheck to paycheck.

According to the company, after adopting Tapcheck, 74 percent of employees reported reduced financial stress. What’s more, employers using Tapcheck’s solution have seen a 74 percent decrease in costs due to absenteeism, 48 percent reduction in those due to turnover, and 50 percent reduction in hiring costs, Tapcheck said.

Based in New York City and San Mateo, California, PeakSpan invests in software businesses.