The Reinvention of Employee Spending: Meet Teampay

Andrew Hoag founded Teampay in 2016 after he was consistently bombarded by employee requests to purchase items using his corporate card. They wanted him to purchase various items on their behalf and even reimburse them for purchases he didn’t even know they made! 

This sparked an idea in Hoag’s head, as he realized that the explosion in fractional services and SaaS (software as a service) led the way towards “on-demand” solutions for various business use-cases. With freelancing and remote work on the rise, he realized that modern companies no longer have a “centralized procurement team” that handles all purchases themselves, but rather, every employee is a part of the procurement team simultaneously. 

Upon examining the marketplace and what solutions currently exist around employee spending, he realized that many of the software solutions and tools for finance haven’t been updated for decades and were severely outdated. Many companies today are struggling due to manual work, best-guess accounting practices, policy misalignment, and having to have awkward conversations with employees every month who didn’t stay in compliance with purchasing regulations. 

To tackle all of these problems and allow any employee to purchase what they need, Hoag began building a simple, easy-to-use system that would help companies spend money more efficiently and stay in compliance. 

From this point on, Teampay was officially established and has been continuously working to help companies spend more efficiently while having the tools they need to simplify their procurement processes significantly.

Hoag was entrepreneurial in nature from a very young age and always wanted to start his own business. At just 12 years old, he started his own lawn mowing business to help out his neighbors and earn some income on the side. As Andrew puts it, “My true passion is building things from scratch,” something he took to heart and applied throughout his life. 

Things were no different with the development of Teampay, and his experience in starting businesses helped guide him forward and make his company the success we see today. 

After he built the initial version of Teampay, Hoag began attracting customers by targeting high-growth companies in the software, hardware, and manufacturing industries. Their ideal client was a firm founded in the last 15 to 20 years, actively building out its tech stack and utilizing a digital-first approach to business. 

Once he realized that many companies were still using completely outdated purchasing processes, he knew it was time to show them a better way. This became their primary marketing strategy, letting companies know they no longer have to chase down receipts or get bogged down in clunky approvals. Hoag began meeting buyers where they were in their own journey and working to find every prospective client a better solution – whether through exclusive events, brand awareness campaigns, digital marketing, or partnerships with industry leaders.

Teampay acquired its first 100 customers by reaching out to its network and contacting prospective companies on LinkedIn; they also promoted their company through cold calling and emailing. As time passed, they hired a salesperson who took over the closing process and helped them acquire more customers, streamlining the sales processes even further. 

As the company grew, it made sure to look at key performance indicators (KPIs) and metrics across the entire customer lifecycle. This includes looking at data such as how many customers they’re closing into final sales, how they’re expanding their customer base, and how they’re retaining employees.

All in all, Teampay has managed to grow from a small single-founder startup to a company that currently has 60 to 75 full-time employees on staff. They also closed a Series A funding round in 2020, bringing their total funding up to $21 million. The most recent raise was led by Fin Venture Capital and supported by some of their existing partners, including Crosscut, Tribe, and Precursor. 

When asked what startup founders who are seeking funding for their own companies should do, Andrew stated, “I think there are many requirements to seek funding … [and] the subset of requirements to make a successful business is smaller than the subset of requirements you need to get venture funding. I don't think people understand that running a good business is a subset of what you need to get venture dollars.”

Teampay grew and became the company it is today through determination, hard work, and a vision for the future. By incorporating all of these elements and striving to make a difference in the world, Hoag made Teampay a company that improves lives.

As Teampay continues to grow, they’ll remain focused on listening to their customers, implementing desired features, and ensuring that their employee purchasing solution only improves with time. 

According to Hoag, “At the end of the day, the only thing you can control and focus on as an entrepreneur is your own execution and continuing to move the business forward with the long-term belief that you're building a good business.”

This is his long-term focus with Teampay: to focus on the execution, make his business the best it can be, and everything else will follow in due time. The most essential part of running any company is to make sure you’re solving your customers’ problems and improving their day-to-day lives every time they interact with you. 

Teampay is improving the lives of every single one of its customers by providing companies with a simplified and consolidated solution for payments and procurements. As they continue to grow and convert more and more businesses into their clients, Teampay will undoubtedly transform the finance and purchasing sector from within. 

Starting a company from scratch is never easy, but as we learned from the origin story of Teampay, anything is possible with enough perseverance, grit, and a powerful vision. If you put your mind to it, you can start a company that solves a significant problem and gets recognition from happy customers all over the world.

Next Steps: 

• Check out Teampay’s company profile, ways to get involved, and their insights for aspiring entrepreneurs!
• Hear startup stories from real founders on the Startup Savants podcast.
• Keep up with more startup companies by visiting our list of the top startups to watch.
• Form your own startup by reading our review of the best online incorporation services.