# Cocoon Financial Services

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/cocoon-financial-services

- Industry: Software
- Headquarters: Mill Valley, US
- Website: www.meetcocoon.com
- Total disclosed funding: $26M
- Latest round: Series A (Dec 15, 2021)
- Investors on record: 6

## About

Cocoon Financial Services, Inc. specializes in employee leave management software, offering solutions that simplify statutory compliance, claims processing, and payroll management for organizations.Founded in 2020 in Mill Valley, US, Cocoon Financial Services, Inc. provides a platform for managing employee leave. The company has successfully raised USD 20 mn in a Series A funding round on December 15, 2021, led by Index Ventures with participation from First Round Capital, Magnify Ventures, SemperVirens Venture Capital, Springbank Collective, and XYZ Ventures. The current CEO, Mahima Chawla, is among the founding team that also includes John Irick, Khiem Nguyen, and Lauren Dai.Cocoon offers a sophisticated employee leave management software that automates the complexities surrounding leave compliance, claims processing, and payroll for companies. The platform allows HR teams and employees to efficiently manage various leave types, including parental, medical, caregiver, and personal leave, while ensuring compliance with the Family and Medical Leave Act (FMLA) and state leave laws. Features include automated eligibility calculations, designation notices, and comprehensive reporting options that save HR teams time and resources. Cocoon primarily serves businesses across the United States, catering to organizations of various sizes that aim to enhance their leave policies and improve employee experiences.Cocoon generates revenue through a subscription-based model targeting businesses that need comprehensive leave management solutions. Clients pay for access to the software based on the number of users or chosen service package, which may include tiered pricing structures for different functionalities. The leave management software helps organizations save costs via its automation features, allowing them to recoup significant benefits payments per leave. Cocoon's transactions occur in a B2B context, partnering with employers to implement effective leave management solutions as businesses recognize the need for robust leave programs.In December 2021, Cocoon Financial Services, Inc. raised USD 20 mn in Series A funding, which will be used to hire new staff and develop additional products. The company aims to expand its services into new markets and geographic regions, with plans for specific target areas to be announced in the near future. This funding will support product development initiatives that are designed to enhance Cocoon's leave management offerings.

## Funding rounds

- Series A, Dec 15, 2021, $20M — Index Ventures, First Round Capital, XYZ Ventures, Magnify Ventures, SemperVirens, Springbank Collective
- Seed, Mar 10, 2021, $6.3M — Index Ventures, First Round Capital

## Investors

- Index Ventures (https://capitalatlas.ai/funds/index-ventures) — Seed, Series A
- First Round Capital (https://capitalatlas.ai/funds/first-round-capital) — Seed, Series A
- XYZ Ventures (https://capitalatlas.ai/funds/xyz-ventures) — Series A
- Magnify Ventures — Series A
- SemperVirens (https://capitalatlas.ai/funds/sempervirens) — Series A
- Springbank Collective (https://capitalatlas.ai/funds/springbank-collective) — Series A