Employee Navigator announces $34 million in growth equity funding

On January 12, Employee Navigator announced $34 million in growth equity funding from JMI Equity. This is a minority investment, and JMI has a long history in the HR Tech and Insurtech space, with previous investments in other organizations such as Businessolver, UKG, Halogen, Applied, Vertafore, and many more.

With this being a minority investment, the communication coming from George Reese, Founder and CEO of Employee Navigator, is that the capital will be put toward growth initiatives and expand partnerships across the carrier and complimentary solution provider space.

From the BTR perspective, we have two main thoughts to this news. First, this does not appear to be a move toward an acquisition of Employee Navigator. This has been a concern for a while and the additional capital puts the organization, who has already been profitable for several years, on a more solid footing for their growth objectives. Second, it has also been confirmed that they will be allowing employers to retain the platform during a BOR change. This is a significant change that could impact our partners in the very near future, as you will no longer retain exclusive control of the site. Any clients tied to you through Employee Navigator are now able to retain their site if they move to another broker with an Employee Navigator license. However, this development should also create new sales opportunities for your Producers to transition some of those prospects who have been tied to their current broker for the same reason.

All in all, we feel like this is an expected and good next step for Employee Navigator as they continue to expand their market presence in that small group and broker deployed space. As we hear additional developments, we will keep you updated.