MEIF - Proof of Concept

HR software company closes second funding round

StaffCircle – the Leicester-based HR software company – has raised a further £775,000 to build its sales and marketing team and expand its client base.

The latest funding round was led by Blackfinch Investments and included the MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund.

The StaffCircle platform is designed for medium to large companies and enables them to improve internal communications, engage more effectively with employees in different locations, manage their performance and maintain a consistent culture.

StaffCircle was founded in 2017 by Mark Seemann, who has previously built and sold three successful software businesses. The business, which currently employs 10 staff, plans to create a further five jobs to allow it to respond to growing interest from potential customers and generate new leads. The latest funding follows a £250,000 investment from the Midlands Engine Investment Fund in 2019.

Mark Seemann, the CEO, said: “The mission for StaffCircle is simple – to capture collaboration between staff, from front-line to top management and everyone in between. Quite often, businesses grow and communication breaks down, especially with a disparate workforce. It’s exactly what happened to me over the years and that’s how StaffCircle was created. This platform is about interacting with staff and empowering them but perhaps more importantly, at a time like this, it’s also about maintaining communication when businesses are not able to do so face to face.”

Dr Reuben Wilcock, Ventures Director at Blackfinch, added: “StaffCircle clearly has tremendous potential. We’re delighted to be backing it at such an early stage.”

David Baker, Investment Associate with Mercia, said: “Mark is an experienced entrepreneur who has developed a great product and built a loyal customer following in a relatively short period of time. This latest funding round will give the company the resources it needs to sign up new potential customers and increase its revenue stream.”

Grant Peggie, Director at the British Business Bank, said: “A key aim of the Midlands Engine Investment Fund is to ensure that Midlands businesses have access to the increased levels of finance they need to grow. This latest investment will enable StaffCircle to increase its business development and create a range of new employment opportunities.”

Kevin Harris, Chair of the Leicester and Leicestershire Enterprise Partnership said: “I’m delighted that StaffCircle has secured this additional funding from the Midlands Engine Investment Fund, to help the business realise its growth plans over the coming years. Leicestershire is a hub for innovative businesses, and StaffCircle is leading the way when it comes to securing the investment it needs to innovate by developing new software products and creating new jobs.”

Mike Jackson of Browne Jacobson in Birmingham provided legal advice to Mercia on the deal while Peter Mayhew of Shakespeare Martineau advised Blackfinch.

The Midlands Engine Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.