Sparrow raises $35 million series B funding to scale its global AI-powered solutions for leave management
Sparrow is the first and only end-to-end leave management solution for global companies
SAN FRANCISCO — July 29, 2025 — Sparrow, the leader in employee leave management technology, today announced it raised a $35 million series B round of funding led by SLW. The series B round brings the total investment in Sparrow to $64 million.
Sparrow will use the funds to scale its revolutionary global leave management technology, enabling the company to and expand its technology to address adjacent labor compliance issues.
Human resources and people operations professionals choose to work in HR because they like people — not paperwork and compliance. Sparrow’s end-to-end leave solution ensures that this compliance is managed correctly and consistently, creating a great experience for HR professionals and employees, and ultimately improving employee retention and engagement.
“Through SHRM membership, more than 325,000 members have access to live HR support at no additional cost. Every year, we receive over 60,000 calls, and for more than a decade, leave management has consistently been a leading concern for our members. It’s inspiring to see the meaningful impact Sparrow is making in this space. We look forward to supporting their continued success as they enter their next phase of growth,” said SHRM Chief Transformation Officer Andy Biladeau.
“Leave is complicated — and stressful,” explained Sparrow CEO and Cofounder Deborah Hanus. “It touches so many aspects of the company — legal compliance, insurance, state agencies, payroll, HRBPs, managers and employees. Everything is always changing, and no one has the data they need when they need it. Sparrow has centralized that data to truly make leave — and adjacent areas of legal compliance — stress-free for the thousands of caring companies who trust us to support their workforce.”
Sparrow is trusted by more than 1,000 caring companies, such as OpenAI, Reddit, and Oura. On the software marketplace and peer-review site G2, Sparrow has a 4.8 out of 5 star rating.
Matt Walsh, Managing Director at Silver Lake Waterman, who led this investment in Sparrow shared, “We are incredibly excited about Sparrow because they are addressing one of the most complex and underserved areas of HR by utilizing AI to automate the manual, error-prone tasks that companies and employees encounter today. By combining deep compliance expertise with intelligent automation, Sparrow is transforming a significant pain point into a streamlined, employee-centric experience. As the future of work demands more flexibility and support for employees, Sparrow is uniquely positioned to become the category leader in this essential part of the human capital management (HCM) stack.”
“I love to do good by doing good. When someone has a life event that requires them to take leave from work, that is an opportunity for that employer to show up for that employee, so they do not need to choose between their work and the people they love. And an employee who has a great leave experience is not only loyal to the company but they also share their experience with others,” elaborated Jeffrey Katzenberg, Cofounder and Managing Partner at WndrCo, which led Sparrow’s last round.
About Sparrow
Sparrow is the first end-to-end leave management solution for modern employers to care for their people during major life events. Sparrow’s high-tech, high-touch approach automates the most painful parts of employee leave management, while our world-class leave specialist team ensures a premium experience for all types of leaves across the United States and Canada. Caring companies, such as OpenAI, Chime and Reddit, trust Sparrow to reduce compliance risks, enhance the employee experience, and contain costs.
About SLW
SLW was founded in 2012 as Silver Lake Waterman, a growth strategy within Silver Lake, the global leader in technology investing. In 2024, SLW became an independent firm while maintaining a close relationship with Silver Lake. The firm partners with leading technology companies by investing repeatedly throughout a company’s lifecycle in both equity and flexible non-dilutive structures to meet evolving capital needs. The firm’s long-term, relationship-oriented strategy allows it to be an enduring partner for exceptional founders and management teams, providing flexible capital and strategic support at every phase of
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