Vendor Analysis
published on Jun 20, 2022
Report Overview:
This NelsonHall vendor assessment analyzes Velocity Global’s offerings and capabilities as a provider of global employer of record services.
Who is this Report for:
NelsonHall’s Global Employer of Record Services profile on Velocity Global is a comprehensive assessment of the company’s offerings and capabilities, designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of employer of record services and identifying vendor suitability for RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the employer of record sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of Velocity Global’s global employer of record service offerings and capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base, including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization, including delivery locations.
Key Findings & Highlights:
This NelsonHall vendor assessment analyzes Velocity Global’s offerings and capabilities as a provider of global employer of record services.
Velocity Global, headquartered in Denver, Colorado, is a provider of global employer of record and automated workforce management services. The company was established in 2014 by its current CEO, Ben Wright, after identifying opportunities in the San Francisco Bay area to support high-tech organizations in navigating the complexities of their globalization efforts.
By 2015, the firm had established its international EOR capabilities in support of ~185 countries and experienced rapid adoption of its services to expand to ~100 employees globally by 2017. Between 2018 and 2021, Velocity Global achieved significant year-over-year organic growth rate and, as a result, was ranked number 4 in 2018 on the Inc. Magazine list of the top 5000 fastest-growing companies with a growth rate of 39,817%, followed in 2019 with the #185 ranking and a three-year growth rate of 2,112%.
The company maintains a proprietary technology stack, Global Work Platform, that enables centralized online access for employers and workers.
In April 2021, the firm secured $100m through a private equity funding round from FFL Partners. In the same month, Velocity Global made its first acquisition, announcing it had acquired San Francisco-based EOR company iWorkGlobal. The acquisition expanded Velocity Global's presence in the United States and enhanced its Agent of Record (AOR) offering. In June 2021, the company announced its second international EOR acquisition of the year, Hong Kong-based employment services and HR technology company Shield GEO.
In May 2022, the company secured $400m in its Series B funding round led by Eldridge and Norwest Venture Partners. The company will use the funds to enhance the customer and worker experience within its Global Work Platform, make strategic investments in technology, sales, and marketing, and explore further acquisitions. Following its most recent funding round, the company valuation increased seven-fold.
Velocity Global's global workforce management services are comprised of the following services:
- Global Employer of Record
- Contractor Payments
- Talent Management: worker recruitment, onboarding, career development
- Independent Contractor (IC) Compliance: accurate classification of workers in accordance with local guidelines, ordinances, policies, and regulations
- Global Benefits: statutory and supplemental worker benefits
- Global Immigration: Visa and consular support
- Global Payroll: an integrated hub for employers and workers
- Global Payments: compensation in local currency.
Velocity Global offers its global employer of record and agency of record services to ~1,200 clients and ~ 7,000 active workers across ~185 countries globally.