Franklin, a company that provides tax-compliant hybrid payroll and cryptocurrency solutions for businesses, has raised $2.9 million in a seed funding round led by gumi Cryptos Capital and CMT Digital.
Franklin offers hybrid cash and crypto payroll services that are tax compliant for businesses and startups. It has secured $2.9 million in seed funding. The funding round was led by gumi Cryptos Capital (gCC) and CMT Digital, with the participation of investors such as Arca, Sfermion, Portage and Synergis Capital.
Serving small and medium-sized businesses, Franklin’s payroll software allows employers to pay their staff using cryptocurrency. In addition to the funding announcement, the company revealed that its software now integrates seamlessly with QuickBooks.
Franklin’s platform is available on the Ethereum and Polygon blockchains, and his initial clients include crypto wallet providers Soul Wallet and Echooo, as well as Alto.
Founder and CEO Megan Knab explained that Franklin aims to provide a flexible payroll solution with a mix of cash and crypto options. The company addresses administrative challenges often faced by native web3 teams with regard to tax form generation, compliance, and accounting.
Franklin’s clients mainly use stablecoins for transactions and crypto payments for employee bonuses. The platform also offers batch trading, multi-currency options, and automated tax filings. Additionally, Franklin can process US dollar transactions in two business days.
Their platform adheres to the various rules for paying employees in crypto in the United States, considering state-by-state regulations. Megan Knab, who has a background as a crypto accountant and the former VP of finance at web3 marketing agency Serotonin, founded Franklin in the spring of 2023.
Franklin is the second company to emerge from Serotonin’s product study, following Mojito, an NFT trading platform that launched in 2021. Serotonin claims Mojito has generated more than $120 million in sales for clients including Sotheby’s, CAA, Pace Gallery , Lyrical Lemonade and the Milwaukee Bucks.
Amanda Cassatt, co-founder and CEO of Serotonin, mentioned that many Serotonin service customers naturally transition to Mojito or Franklin. Franklin’s pricing model remains undisclosed, but Knab said it is in line with existing web2 payroll platforms like Gusto and Justworks.
Notable angel investors in Franklin’s seed round include Sapphire Ventures vice president Jason Brooke and associate Iladro Sauls. The company plans to expand its services by introducing crypto-integrated retirement savings accounts and health benefits, as well as compatibility with other Layer 2 blockchains.
