ADP launched ADP Ventures, a corporate venture capital arm and “innovation lab.” The unit’s mission is to strengthen ADP’s core business, create offerings in new adjacent segments and geographies, and develop assets to monetize markets and segments beyond HCM.
“ADP Ventures will allow us to further invest to provide clients with unmatched support throughout the HCM journey, from hire to retire and, most importantly, that critical space in between where we hope to inspire people as they fulfill their potential,” said ADP President and CEO Maria Black.
As part of its strategy, ADP Ventures will invest in and partner with early-stage and growing tech startups that advance the company’s product strategy. The unit has invested in SemperVirens Venture Capital, an early-stage VC fund that focuses on work, health and financial wellness technology.
Early Stage Focus
ADP Ventures intends to focus on early-stage strategic investments with co-investors, and will target a “small, leading” subset of innovative new companies. The company completed investments in two startups this year: Cocoon, a leave management software provider focused on improving the employee leave experience, and Fringe, a marketplace of services that facilitate a variety of programs such as lifestyle benefit stipends, wellbeing, rewards and recognition, and peer-to-peer gifting.
Usman Khan, ADP’s senior vice president of ventures, said the company is well-positioned to work with and scale new companies because of its product stack, global footprint, brand and partnership expertise. “[We] can help accelerate [startups’] growth and impact on the human experience through access to our customers, platforms, proprietary data, subject matter experts and broader community,” he said.
The partnership with SemperVirens offers access to the firm’s executive advisory board, which can advise founders on scaling their products, sales strategies and key partnerships.