A New Season Begins In Work Tech

As the clock runs out on August, change is in the air. Some of us are getting kids are going back to school, while others are trying to squeeze in a last-minute summer trip or day by the pool. Everyone is slowly slipping into the familiar rhythms of fall. The sprint toward the end of the year is almost here. What will that look like for startups in the #WorkTech industry?

At The Starr Conspiracy, we talk to founders, growth leaders, and investors all the time. There’s a definite theme developing. The separation between the quick and the dead — the companies that will survive this long, dark time and those that probably won’t — is becoming clear. The survivors are the ones that have managed to become cash-flow positive and maintain growth. They have balance sheets in order and realize that the opportunity to get investment is on the horizon.?

What are they doing??

They’re freshening up their brands, tightening their messaging, and adjusting their go-to-market strategies to reflect the new SaaS growth reality.?

What does this look like?

My colleague Matt Tatum talked about this very topic with our founder, Bret Starr , on his recent Micro Podcast. The focus is a unified approach to go-to-market strategy. At The Starr Conspiracy, the way we talk about it is taking a holistic approach to Customer Experience. That means delivering a consistent, differentiated experience for prospects and customers across the five domains of experience – brand, marketing, sales, product, and customer success.?

We’ve been through enough market cycles as a business to recognize inflection points in the industry. This is one of those times. It’s one of those moments when people converge, start talking, and realize that they have arrived at the same conclusion on their own ahead of broader market awareness. We experienced this in 2010, 2014, and 2019. It’s happening again. If you want to know more, please reach out to us. We’re happy to talk. If you aren’t ready for a conversation but want to know more, I encourage you to read Bret’s book. He lays everything out in a very easy-to-understand way.

We are becoming more optimistic about the end of the year and 2025. YMMV, but it’s happening. Get ready.

What else is going on this week?

Funding and Acquisitions

• Trunk Tools raises $20 million Series A. The NYC-based startup offers an AI automation platform for the construction industry. (FinSMEs)
• Cassidy raises $3.7 million seed round. The NYC startup develops secure, context-aware AI assistants and automated workflows for businesses. (CB Insights)
• Pangeam Inc. raises $2.8 million seed round. The Austin company provides insights into workplace occupancy and employee sentiment, helping organizations to make decisions about their work environments. (CB Insights)
• RxSaveCard raises $1.7 million pre-seed round. The Chicago-based pharmacy benefit solution is designed to help employees pay directly for their medications at over 65,000 pharmacies. (FinSMEs)
• F4e raises $1 million seed round. The Istanbul, Turkey, startup offers a suite of tools for OKR and KPI tracking, performance, and talent reviews, compensation management, and employee engagement surveys. (CB Insights)
• Emunitas raises seed round. The Japanese startup connects international students with job opportunities in Japanese companies, providing training programs to equip students with various workplace skills, and conducting vetting of candidates for companies. Deal terms were not disclosed. (CB Insights)
• GFOS gets PE investment. The Essen, Germany, company offers a suite of products that enable businesses to manage employee scheduling, automate production control, and secure access to facilities and systems. Deal terms were not disclosed. (CB Insights)
• Lazarus AI gets investment. The Cambridge, Massachusetts, startup processes data from various formats, such as PDFs and images, in industries including healthcare, insurance, law, and financial services. Deal terms were not disclosed. (FinSMEs)

Enter Now: Top 25 Work Tech Vendor Awards

The clock is ticking! #WorkTech vendors who are looking to bask in the glory of becoming one of Inspiring Workplaces’ Top 25 Work Vendors (in association with The Starr Conspiracy) should enter by September 12. Winners will be announced in Las Vegas at #HRTech! Find out more!

BLS Revises Payroll Numbers D-O-W-N

The Bureau of Labor Statistics’ annual revision to payroll figures shows a minus-818,000-person adjustment to Total Nonfarm Payrolls – equal to half a percent of the total U.S. labor force. The bulk of the revision was a (not surprising to us) minus-358,000 adjustment to Professional Services. Check out what my colleague Lance Haun has to say about this.

Are GLP-1s Wrecking Employer Healthcare Costs?

According to new research from the Business Group on Health, employers expect 2025 healthcare cost trends to rise 8%. About 57% of employer benefits decisionmakers said spending on GLP-1 drugs like Wegovy and Ozempic is "driving health care costs to a great or very great extent." Some predict that this trend could lead the way to pared-down benefits next year.

Industry Notes?

• O.C. Tanner partners with CipherHealth to enhance recognition for healthcare systems. (Press Release)

• Federal judge bans the non-compete ban, but, as Heather Bussing points out, it doesn’t matter to California employers.
• Attensi ’s Greg Hull on how we are failing new managers and when we could set them up for success. (Fast Company)
• Job search heats up as workers fight off the summertime blues. (LinkedIn)
• OpenSesame and SAI360 partner to bring expanded ethics and compliance training to a global audience. (Training Industry)
• Earnings: Paycor posts better-than-expected Q4 numbers but see analyst downgrades anyway. Workday’s solid Q2 earnings send its stock up 11%.
• Chris French (ex-Workhuman) joins CarltonOne as global EVP. (LinkedIn)
• Udemy founder returns 8 years later as CTO. (X)

• Udemy research: 65% of Gen Z eager for professional development. (Press Release)
• Gallup research: 1 in 5 employees worldwide are lonely. (Gallup)
• Women leading surge in mental health leaves. (Benefits PRO)
• IRS issues Secure 2.0 guidance for 401k student loan matches. (Benefits PRO)
• 5 Key voluntary benefits to watch in 2025. (HR Executive)
• The stars of Monday.com’s new campaign: Orcas. (Campaign Live)
• One brand's anti-Gen AI pledge is winning kudos from creatives. (The Verge)

Around The Shop

Stuff we’re finding interesting right now at The Starr Conspiracy.

• The Anti-Adam Neumann of the co-working industry. (The Wall Street Journal)
• RIP Alain Delon, an icon of French New Wave Cinema. Was he too handsome to be taken seriously as an actor? (The New Yorker)
• The future of B2B Customer Experience: Human vs. AI. (Marketing Profs)
• What do employees want in today’s office space? Their own damn desk. (Benefits PRO)

That’s it for this week!

Everybody love everybody,

Steve

Also, Are you a #WorkTech or #EnterpriseSoftware company with more than $10 million in revenue or funding that wants to accelerate your growth? Book a meeting with us to discuss how we can improve your go-to-market strategy and execution.

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About The Starr Conspiracy

The Starr Conspiracy is an Experience Agency for enterprise technology companies that are shaping the way people work. Our passion is creating defining moments to transform your business across the Customer Experience spectrum — Brand, Marketing, Sales, Product, and Customer Success.