BusinessInsider: Salt Labs Pitch Deck

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Here'sthe13-pagepitchdeckthatSaltLabs,antechhelping hourlyworkersbuildwealth,usedtoraisea$10millionpreseedround

PaigeHagy Apr12,2023,10:39AM

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SaltLabsisantechthatwantstohelphourlyworkersbuild wealth.

JasonLee,founderofDailyPayandaformermanagingdirector atGoldmanSachs,foundedthestartupin2022.

SaltLabsusedthis13-pagepitchdecktoraisea$10millionpreseedround.

Salt Labs is a loyalty and payments nancial-technology company. The startup just launched its app, Salt, which allows hourly employees to earn points, called "Salt," for every hour they work. Salt can be redeemed for goods and experiences, including wealthbuilding resources like savings bonds.

"The mission of Salt Labs is to enable hourly workers to own the long-term value of their work," Jason Lee, founder and CEO of Salt Labs, told Insider. "And we want to eectively create assetownership for the work that's being done."

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Lee previously founded DailyPay, an earned-wage access startup. Prior to DailyPay, he was a managing director in the equity capital markets group at Goldman Sachs.

Salt Labs announced a $10 million pre-seed round on March 29, led by Fin Capital. Lee declined to share the startup's valuation.

Lee compared Salt to a frequent ier miles program. In the same way a ier earns "miles" for every ight, employees earn one Salt for every hour they work. But unlike ier miles and other rewards programs, the Salt that employees earn never expires, meaning it can be accrued over their tenure.

Salt can be redeemed everything from educational resources like training programs, to savings products, and personal consumption like trips. Salt can also be transferred between users like a peer-topeer payment app.

ThenewLinkedInforhourlyworkers

Nearly 56% of the US workforce is paid at an hourly rate, according to a 2021 report by the US Bureau of Labor Statistics. But wealthbuilding resources aren't very accessible or accommodating to this demographic.

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"Have you ever tried to transfer a 401(k)? It's very hard to transfer it to your next job," Lee said. "So what happens is the hourly workforce will have like ve 401(k)s at seven dierent employers, and there's all this leakage that's occurring."

Salt Labs launched its app on April 1 and already has more than 2,000 users. Its customers are low- to medium-income workers, and since it is a direct-to-consumer, any employee can sign up and selfverify their worked hours.

Lee declined to share the startup's revenue strategy. However, page six of the pitch deck details "potential Salt applications," which includes lending, recruiting, background checks, advertising, and loyalty.

One of Lee's plans moving forward is making Salt cash-redeemable. He also wants to roll out Salt for employers to oer as an employee benet.

Lee wants to add features like "vesting" — where a worker can earn additional Salt by working at a given job for some period of time. For example, if a worker stays at a job for three months, then they could start earning 1.5 Salt per hour rather than one Salt per hour.

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He also envisions Salt becoming like a LinkedIn for hourly workers, where an employees' Salt earnings prole can be shown to employers as a digital resume.

"Companies are in a labor crunch. They're having a very dicult time hiring people, nding labor, all of these things," Lee said. "And so we think this is a perfect storm – having to gure out, 'Hey, how do we actually create some engaging, loyalty building relationship with that employee while delivering things of value to her?'"

"Sure, initially it's some points to redeem for some goods and services, but eventually this thing becomes a tool or a digital resume," he added.

Readthe13-pagepitchdeckSaltLabsusedto raisea$10millionpre-seedround.

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