Aaron Carr, founder and CEO of Qarrot, recognizes that low employee engagement is a costly global issue. US employers alone lose up to 500+ billion annually from poor employee engagement – and the post pandemic shift to a hybrid work model has exacerbated this problem.
Low engagement affects companies in many ways, ranging from poor productivity, lower revenues, high staff turnover and unsatisfied customers. Qarrot’s mission is to help employers improve engagement, strengthen work culture and boost performance using a cloud-based employee rewards and recognition software.
Qarrot allows employers to recognize employee achievements and strengthen culture and motivate improved performance through challenges and contests. The software provides features such as points, gift cards, peer-to-peer recognition, award campaigns, and birthday and work anniversary awards. Since 2018 the company has grown from 1 customer to over 110 paying customers with an average of 75 employees.
Qarrot’s potential market for the product is significant. Most vendors currently in the market pursue larger enterprises. Qarrot targets smaller to mid-size companies. The estimated market spend on employee engagement solutions by segment in the smaller to mid-size space is significant - small business (1-499 employees): $6B; Mid-Market (500-2,499 employees): $11B.
Investment Ask: $750,000