Parento has raised $5.9 million in an oversubscribed Seed II round led by ResilienceVC to expand its paid parental leave insurance platform. The funding brings total capital raised to $10.3 million for the company that provides comprehensive parental leave benefits to companies with as few as 10 employees.
The round included participation from Kapor Capital, Bread & Butter Ventures, Operator Stack, Coyote Ventures, ffVC, Human Ventures, Springbank, Precursor, Cross Impact, K Street, Evidenced, and Avesta.
Parento addresses the challenge that nearly three-quarters of private sector employees lack access to paid parental leave. Traditional approaches expose companies to volatile cash flows when multiple employees take leave simultaneously, while alternatives like short-term disability provide limited coverage.
“Parenthood is not gendered, and paid parental leave is not just for Silicon Valley or STEM, but for every workplace interested in employee wellness, talent acquisition, and retention,” said Dirk Doebler, Founder and CEO of Parento. “Parento makes paid parental leave affordable and attainable for every company, regardless of size or budget.”
The platform combines paid parental leave insurance with leave management services and personalized parent coaching. This comprehensive approach delivers measurable results: 95% of Parento parents return to work after leave, compared to 60-65% for self-funded programs. The company achieves 10% engagement rates with coaching services, significantly higher than typical Employee Assistance Programs that see 1% utilization.
Male engagement represents a significant success metric, with 46% of claims filed by men taking leave and up to 33% utilizing coaching services. This contrasts with broader statistics showing only 5% of working men take more than two weeks off after childbirth.
Parento provides insurance coverage with up to 100% financial protection. This approach has enabled the company to serve diverse industries, with 25% of clients in nonprofit or manufacturing sectors that traditionally lack comprehensive HR resources.
“Parento aligns exceptionally well with our thesis of investing in innovative companies that close gaps of access, opportunity, and outcomes for underserved communities,” said Brandon Boros, Venture Partner with Kapor Capital. “Their model turns an unpredictable business expense into manageable monthly costs while delivering comprehensive support that helps companies attract and retain talented parents.”
The funding coincides with several growth milestones, including a partnership with the International Union of Operating Engineers, one of the 20 largest unions in the US. This partnership marks expansion into blue-collar workforces and international operations serving union members in Canada. Parento has also launched partnerships with Professional Employer Organizations, including one of the largest in the country serving over 500,000 clients, enabling access to small businesses through established distribution channels.
The funding will support expansion across product development, sales, and marketing teams while launching additional insurance offerings. ResilienceVC joins an all-female board aside from Doebler, reflecting the company’s focus on workplace challenges that disproportionately impact women while maintaining gender-neutral parental leave coverage.
