Upwards (formerly WeeCare) – a leading national childcare network and care benefits company – announced that it had closed a $21 million Series B financing round led by Alpha Edison, with participation from existing investors M13 and Fika Ventures. With this latest funding round, the company’s total funding reaches $43.3 million, making it one of the most notable investments in childcare companies in recent years.
Since launching childcare benefits solutions in response to the pandemic’s workforce challenges, Upwards grew 8-fold, securing significant partnerships with employers like Chobani, JCPenney, Trane Technologies, and the U.S. Army Reserves, along with over 520 other companies championing care support for their working families. And by partnering with government agencies at all levels, Upwards streamlines the whole childcare experience for caregivers and families, ensuring efficient subsidy distribution and removing barriers to quality care for families in need. Upwards serves nearly 3 million families through its network of vetted caregivers, from daycares to babysitters and nannies, all empowered by the company’s tech platform to deliver exceptional care and build sustainable care businesses.
This growth capital will accelerate Upwards’ expansion and help improve the customer experience for families, caregivers, and new and existing employer and government partners. And the company will also focus on expanding its caregiver network to diversify further care options that meet the unique needs of families, fulfilling its mission of making quality care accessible to all families while empowering the caregivers who provide it.
Over half of working parents, driven by the high cost and limited availability of childcare, were forced to leave their jobs in 2022. And this is not only a personal hardship for families but also a major challenge for businesses struggling to retain employees. Childcare issues cost employers more than $20 billion annually due to lost productivity and employee turnover. And to address this, HR departments actively seek creative solutions like childcare benefits.
Upwards simplifies childcare benefits for companies, providing data-driven insights that showcase their impact on recruitment and retention. And focusing primarily on frontline workers in manufacturing, healthcare, hospitality, and retail, Upwards’ benefits have led to a 30% reduction in employee absenteeism and a 5x decrease in turnover among employees utilizing childcare assistance.
By partnering with governments, Upwards connects eligible employees with subsidies, making childcare affordable through employer, employee, and state contributions. And Upwards’ technology cuts the time to match with qualified caregivers from months to hours, eliminating waitlists for families, providing prompt payments to providers, and maximizing the efficiency of subsidy programs.
KEY QUOTES:
“Upwards has quickly become a leader in childcare benefits by leveraging technology to connect families, caregivers, employers, and governments – a powerful alliance to solve care for good. While billions in public and private funds flow towards childcare annually, hundreds of millions of families still struggle to find quality, affordable care and participate in the workforce, highlighting clear gaps in the system. The growing demand from employers and governments shows that Upwards’ ecosystem-based model and tailored care solutions are making a true difference.”
- Jessica Chang, CEO and Co-Founder of Upwards
“The need for childcare touches nearly every family. However, for most it remains unavailable or too costly, or both. The result is a large pool of latent demand. Upwards uses an innovative business model and product to make trusted, convenient care affordable for many more people. Jessica and the talented Upwards team are quietly building a category leader and already bringing joy to millions of families across the county.”
- Nate Redmond, Managing Partner at Alpha Edison – who will join Upwards’ board
