How Paro Works and Ongoing Success
Finance startup Paro works in two measures: it acquires a large group of freelance financial experts and connects those experts with business owners who need them. The company first consults with the business owner and finds out exactly what is needed. The services include accounting and bookkeeping, filing taxes, or even a full financial analysis and plan for the business’s future. From there, the finance startup pairs the business with a freelance expert tailored to those needs.
After a meeting between the freelance financial expert and business owner that Paro oversees, the company takes a hands-off approach, which allows the two to work together freely. The finance startup also provides ongoing support if an issue arises or other solutions are necessary.
Freelance experts who are added to the network go through an intense vetting process, with only 2% of applicants being accepted. On average, freelance workers who are accepted into the network by the finance startup have over 15 years of experience.
This system has proven to be incredibly popular for business owners. While the financial advice from the financial expert will certainly help companies save money, the largest savings will come from not having an in-house financial consultant.
The company has already proven to be successful, with business doubling since Q3 of 2020. Through its freelance network, the company has seen 20% of its member bill between $100,000 and $500,000. In 2021, several different freelance members of the finance startup are on pace to make well over $500,000 by the end of the year.
Funding and Future Plans for Paro
In the Series B funding round, Paro raised $25 million. The $10 million raised in the Series A round combined with the new funding brings the total raised capital for the finance startup to $35 million. The funding round was led by Madrona Venture Group with participation from Revolution Ventures, Sierra Ventures, and KGC Capital.
The new capital will help allow the company to bring on an even larger network of freelance workers as well as expand across the country. The long-term plan for Paro is to eventually spread to international areas as well. A portion of the new funding will also be invested into artificial intelligence (AI) technology to provide new tools to the experts on the network.
When commenting on the latest funding round for Paro, CEO of the company Anita Samojednik said, “2020 was a unique moment in the evolution of work, showing that even the most complex finance projects, such as ERP implementation, fundraising or M&A support, can be effectively executed in a remote work environment. The power of our model lies in our ability to help companies address specific challenges by using technology to pair them with top-tier talent who have highly specialized skill sets. With this fundraise, we will continue to innovate and disrupt the traditional employment model to help companies and experts alike drive their businesses forward.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.