Wingspan Raises $24M to Scale Contractor Management and Capture $1.4T Market

Wingspan, a contractor management and payroll solutions company, has raised $24 million in its Series B funding round, led by Touring Capital. The company has expanded its customer base by 200% and processed over $3 billion in contractor payments. Wingspan's new tool, Wingspan Embed, integrates with HR platforms to simplify contractor management. Teladoc Health is one of its clients, saving 28 hours per month in payment processing. The funds will be used to enhance adoption and expand in key sectors. Wingspan sees a $1.4 trillion market opportunity in contractor payments.

Wingspan, a leading contractor management and payroll solutions company, has raised $24 million in its Series B funding round, led by Touring Capital. The funding brings the company's total capital raised to $54 million. Existing investors, including Andreessen Horowitz, Long Journey Ventures, Distributed Ventures, Company Ventures, and 186 Ventures, also participated in the round.

Wingspan has experienced significant growth in recent years, expanding its customer base by 200% and processing over $3 billion in contractor payments. The company's mission is to make contract work effortless for both businesses and contractors. In less than three years, Wingspan has supported 12 times more contractors and increased its average contract value (ACV) by 5 times.

The new funding will be used to accelerate the adoption of Wingspan Embed, a comprehensive contractor management solution that integrates with HR platforms. Wingspan Embed offers features such as contractor onboarding, tax automation, payments, tax withholding, debit cards, instant payouts, and insurance. This solution aims to streamline contractor management for HR platforms, reducing the need for businesses to juggle multiple systems.

Teladoc Health, one of Wingspan's clients, has experienced significant benefits from using the platform. The company saves an average of 28 hours per month on payment processing for its 10,000 healthcare providers.

Wingspan's growth and the increasing demand for contractor management solutions signal a significant shift in the workforce composition. By 2027, half of American workers are projected to earn some income from independent contracting, highlighting the need for robust infrastructure to manage this evolving workforce.

The company plans to use the Series B funding to expand its footprint in key verticals, including healthcare, insurance, staffing, and professional services. Wingspan will also invest in its team and launch AI-powered products to further automate contractor compliance and streamline payments.

References:
[1] https://www.prnewswire.com/news-releases/wingspan-raises-24m-series-b-to-scale-embedded-contractor-management-and-capture-1-4t-market-302515380.html
[2] https://www.marketscreener.com/news/wingspan-raises-24m-series-b-to-scale-embedded-contractor-management-and-capture-1-4t-market-ce7c5fd9d181f223