Intelligent compensation platform Pequity announced on 23 June that it has raised US$19 million in a Series A funding round led by Norwest Venture Partners with participation from First Round Capital, Designer Fund, and Scribble Ventures, as well as angel investors.

Pequity was founded in early 2020 by Kaitlyn Knopp and Warren Lebovic with the objective of centralising and streamlining compensation data, so as to ensure that compensation is transparent and salary disparities can be avoided or corrected at an early stage. It has seen growth within the tech industry, particularly among fast-growing startups including Instacart, Scale.ai, and ClearCo.

According to CEO Knopp, the funding will be used to develop and scale the platform and to grow the team. Pequity plans to double its workforce of 20 by the end of 2021, and the new funding has already been used to hire a new head of engineering.

Knopp also revealed in a blog post that the startup is currently working on ways to model promotions and merit increases, among other features.

“Many fast-growing companies don’t have the tools or resources to scale compensation programs or rely on out-of-date spreadsheets to determine compensation, which can lead to a disjointed portfolio of offers that creates pay inequities and unsustainable comp packages - costing companies an average of $440,000 per year to correct pay gaps,” she said of Pequity's mission. “Getting compensation right is critical to hiring talent and scaling companies—now more than ever fueled by national social movements like Black Lives Matter and the MeToo movement.”