HR technology startup Comp has successfully closed a R$ 100 million (approximately US$19.3 million) Series A funding round, a landmark event led by renowned Silicon Valley firm Khosla Ventures. This investment marks Khosla Ventures' first foray into the Brazilian market, signaling strong international confidence in the nation's growing tech scene. The capital injection will fuel Comp's mission to redefine human resources by integrating bespoke artificial intelligence tools with high-touch strategic consulting.
A Landmark Investment for Brazilian Tech
The funding round was spearheaded by Khosla Ventures, an influential firm known for its early investments in transformative companies like OpenAI and Stripe. The deal also saw participation from Abstract Ventures and Endeavor Catalyst, alongside returning seed investors Kaszek and Canary, who increased their stakes. This diverse and prestigious group of backers highlights the significant potential seen in Comp's disruptive approach to a traditionally underserved corporate function.
Keith Rabois, a partner at Khosla Ventures and a veteran of PayPal and Square, led the investment, stating that Comp is the first HR solution he has seen that genuinely improves a company. This powerful endorsement underscores the unique value proposition that attracted the prominent venture capital firm. The investment is not just a win for Comp but also a potential catalyst for other global funds to explore opportunities within Brazil.
Reimagining Human Resources with a Hybrid Model
Comp operates on what it calls a "Service as a Software" model, inverting the standard industry practice of selling generic software platforms. Instead, the company provides a hybrid solution that combines the strategic insight of a consulting firm with the efficiency of custom-built AI software. This model directly addresses the common sentiment that traditional HR processes are often bureaucratic, impersonal, and misaligned with business objectives.
Upon engagement, Comp embeds a dedicated team—comprising an HR specialist and an AI engineer—within each client's organization to diagnose specific challenges. This team then develops and implements a tailored strategic plan, which can include creating proprietary AI tools to solve complex problems. A notable example is the creation of a dynamic 'compensation hub' for Nubank, which provides customized salary recommendations across different departments and countries.
From University Project to Industry Disruptor
The company was founded by American Christophe Gerlach and Brazilian Pedro Bobrow, who first collaborated on a startup while studying at Cornell University. Their subsequent professional experiences—Gerlach at General Atlantic and Bobrow at Lyft—provided them with firsthand insights into the shortcomings of corporate HR. These experiences solidified their conviction that the way companies manage their people was fundamentally broken and ripe for innovation.
The founders' core philosophy is that creating a "magical experience" in HR requires a series of small, interconnected innovations rather than a single monolithic solution. They believe that by leveraging AI, they can deliver hyper-personalized solutions at scale, combining the best of both consulting and technology. This approach aims to transform HR from a risk-averse administrative function into a strategic driver of business success and employee well-being.
Fueling Growth and Global Expansion
Comp has already demonstrated significant market traction, serving over 100 clients, including Brazilian tech giants like iFood, Nubank, and Stone. The company reported impressive 400% growth last year, validating the demand for its innovative model. The new capital will be strategically deployed to double its current team of 40 employees and further advance its AI-powered product offerings.
A key objective for the new funding is to drive international expansion, with the United States as the first target market. The founders are already establishing a New York office to serve as a launchpad for their U.S. operations, which are slated to begin this year. They believe their integrated, strategic model fills a critical gap in the American market, which is currently fragmented between traditional consultancies and software vendors.
Comp's $19.3 million funding round is a powerful validation of its vision to revolutionize the human resources industry through a unique blend of technology and strategic partnerships. The backing from a globally respected investor like Khosla Ventures not only provides the necessary capital but also lends significant credibility to its mission. With this support, Comp is poised to scale its operations in Brazil and begin its journey to challenge established HR norms on a global stage.