Structural, a St. Paul-based human resources software company, has raised over $2 million in equity, CEO Scott Burns said Friday.
The round was led by St. Paul-based marketing company Augeo. The round is currently just over $2 million but could grow to be as large as $2.5 million, according to a Form D filed with the SEC. That depends on whether another investor chooses to invest, Burns said. Other participants in the round included Rise of the Rest, a previous Structural investor.
Structural creates an internal directory for large companies, sort of like an internal LinkedIn. Employees can use the platform to seek out opportunities and make connections, while employers can gain more insight into the people who work for them through data analysis of employee profiles.
Structural has over 30 clients, including Sunrise Banks and Andersen Corp. It has tens of thousands of users on its platforms and plans to add more as companies adjust to a world where more employees work remotely more of the time as a consequence of the Covid-19 pandemic.
“We all know it’s never going back to the way it was,” Burns said, referring to the way people worked before the pandemic. structural has been adding clients to its pipeline in the past few months as companies try to get ahead of the curve.
Top priorities for the new cash will be building on the existing Structural product and building up marketing, Burns said. The firm currently has 18 employees. A point of focus going forward will be Structural’s integrations with platforms that have exploded in popularity during the pandemic like Microsoft Teams. It also has integrations with platforms like Slack, Salesforce and Augeo’s Encore.
“We have seen the impact with our customers and their people of bringing Structural’s unique capabilities into our Encore platform. The future of work is more connected and more dynamic,” Augeo CEO David Kristal said in a statement.
Structural has now raised over $9 million since it was founded in 2017. It raised $2.5 million in 2018. That round featured participation from Rise of the Rest and a group of Twin Cities investors including Matchstick Ventures, Great North Labs and Bread and Butter Ventures (then investing as The Syndicate Fund).