Escalate Secures $1.26M in Pre-Seed Funding to Revolutionize Frontline Worker Retention and Career Advancement
Escalate, a company focused on employee retention, has secured significant funding to further its mission of supporting frontline workers. The company, based in Silver Spring, Maryland, offers a unique technology-based solution that provides asynchronous online training, support from social workers and coaches, and on-the-job training. This comprehensive approach aims to increase employee satisfaction and reduce turnover, primarily serving the retail industry.
Founded in 2022, Escalate has made significant strides in addressing the challenges faced by frontline workers. These employees often struggle with a lack of pathways for advancement and issues related to absenteeism. Escalate’s founders, Sienna Daniel and Sean Segal, noticed these problems firsthand during their time at Teach For America and subsequent work in the nonprofit sector. They realized that businesses were more likely to take them seriously if they could solve a problem that directly impacted the bottom line.
Escalate’s solution involves scraping data from human resources information systems and applicant tracking systems to identify talent most likely to turn over within 90 days. The company then provides live support seven days a week and automation for employees missing work, offering solutions such as Uber codes for those with car trouble. After establishing a short-term solution, employees must have a session with coaches to find a longer-term solution. This approach frees up Escalate’s staff to work on unique circumstances, providing more personalized support.
The company recently raised $1.26 million in a pre-seed round led by RockCreek’s Racial Equity Capital Fund, with participation from Potencia Ventures, TEDCO, Techstars, ECMC Foundation, Gurtin Ventures, Blue Zone Partners, Future State, and Brad Collins. This funding will be used to build out Escalate’s automation technology and add about five to ten roles over the next few months, half of which will be tech roles.
Escalate has already signed its first two contracts, worth about $2.3 million, which call for training 1,200 to 1,500 people next year. The team hopes to launch these trainings in February and aims to train 6,000 people in 2025, and 24,000 in the year following, in accordance with the needs of one of its customers.
Daniel and Segal emphasize the importance of creating systems change in the US, driven by their passion for serving frontline workers. They point out that many frontline workers lack avenues for advancement, often switching jobs and companies in the hopes of moving up but continuing in the same cycle. Escalate addresses this by identifying pathways suited for each candidate and helping them select one after the first six months of programming. These pathways are based on the company’s needs and what suits each frontline worker, ranging from management roles at a store to recruitment and sales to entry-level IT positions.
This approach not only benefits workers by increasing their income but also helps companies access a more diverse pool of candidates. Escalate works with companies to identify the best-suited pathways for frontline workers, considering both the company’s needs and the workers’ interests. By doing so, Escalate aims to break the cycle of turnover and help frontline workers achieve better living wages and career advancement.
The funding secured by Escalate is a significant step forward in its mission to support frontline workers and reduce turnover. With its innovative technology-based solution and comprehensive approach to employee retention, Escalate is poised to make a lasting impact in the retail industry and beyond.