Khosla's Keith Rabois backs Comp, which wants to bolster HR teams with AI | TechCrunch
Summary
Comp, an HR tech startup in Brazil, has raised $17.25 million in Series A funding led by Khosla Ventures to enhance HR teams with AI-driven solutions.
Why It Matters
The investment in Comp signifies a growing interest in AI applications within HR, particularly in regions like Brazil where traditional HR software is lacking. This could reshape how HR functions are managed and introduce more efficient, tech-driven solutions in the sector.
Key Takeaways
- Comp aims to automate HR functions traditionally handled by consultancies.
- The startup has secured $17.25 million in funding, marking Khosla Ventures' first investment in Brazil.
- Comp's model includes deploying experienced HR executives to enhance AI training.
- The company is targeting expansion into the U.S. market after establishing a client base in Brazil.
- Comp competes with established HR platforms by offering a unique AI-driven approach.
After graduating from Cornell University, Christophe Gerlach spent nearly two years investing exclusively in HR tech startups for General Atlantic. Investing was exciting, but Gerlach was yearning to get back into entrepreneurship. While at Cornell, Gerlach (pictured above, right) built and sold a food delivery startup alongside classmate Pedro Bobrow (pictured above, left), a Brazilian native. Then in late 2022, Gerlach and Bobrow (previously a product manager at Lyft) teamed up again, merging their sector expertise and cultural roots to launch Comp, an HR tech startup focused on Brazil. Comp is building AI-powered HR software that can assist with tasks like recruiting, setting compensation policies and designing performance review systems. The startup also provides “forward-deployed” experts — former HR executives — who work with customers to design strategies for compensation, performance, and recruiting. While companies in Brazil often hire compensation consultants, Gerlach says its forward-deployed HR executives shouldn’t be viewed as consultants, but rather as extensions of existing HR teams. These executives also play a critical role in refining Comp’s technology. “Our forward-deployed HR execs do all the work manually at first, and then they use that work to train the AI how to think in best practices,” Gerlach said. The idea, of course, is that over time, Comp’s AI agents will become fully autonomous and capable of performing traditional HR functions. While Comp c...
