NEW YORK — Parento, a provider of comprehensive paid parental leave (PPL) insurance with employee support services, has raised a $5.9 million Seed II funding round led by ResilienceVC. 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, and brings Parento’s total amount raised to $10.3 million.
The funding comes as demand for paid parental leave surges among employees and employers alike, yet small and mid-sized businesses face significant financial and administrative barriers to offering parental leave. Traditional approaches expose companies to volatile cash flows when multiple employees take leave simultaneously, while alternatives like short-term disability only cover limited demographics and income replacement, leaving nearly 3 in 4 private sector employees and more than half of all employees without access to PPL.
“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. “As demand grows and the definition of family evolves to match reality, there’s a systemic need for a true solution. Parento makes paid parental leave affordable and attainable for every company, regardless of size or budget.”
Parento’s three-in-one approach combines customizable paid parental leave insurance with parental leave management services and personalized, human-based parent coaching. This comprehensive model delivers measurable results: 95% of Parento’s parents return to work after leave, compared to just 60-65% for self-funded programs. Parento achieves 10% average engagement rates amongst all full-time employees with its one-on-one coaching services, significantly higher than typical Employee Assistance Programs which see at best 1% utilization. Furthermore, while just 5% of working men take more than two weeks off after the birth of their youngest child despite demonstrated relational and workplace benefits, 46% of claims were filed for males taking leave, with up to 33% of men utilizing 1-on-1 parent coaching services.
Unlike competitors that primarily offer consulting services on parental leave policy creation, Parento provides an actual insurance product with up to 100% financial coverage. This distinction has enabled the company to serve diverse industries often overlooked as desiring family-friendly policies—25% of Parento’s clients operate in nonprofit or manufacturing/warehousing sectors that run on tight budgets with little to no HR personnel.
“Parento aligns exceptionally well with our thesis of investing in innovative companies that close gaps of access, opportunity, and outcomes for underserved communities by tackling a critical shortfall in the U.S. benefits system, especially for businesses that traditionally lack the resources to offer paid family leave,” 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.”
Parento will use the new capital to expand across product development, sales, and marketing teams while launching additional insurance offerings and new products. The funding announcement coincides with several key growth milestones, including a partnership with the International Union of Operating Engineers (IUOE), one of the 20 largest unions in the nation, marking Parento’s expansion into serving blue-collar workforces in non-paid family leave states. Parento’s parents-first approach has also enabled it to expand internationally for the first time through its IUOE partnership, serving union members in Canada.
