Ready to build your own Founder-Led Growth engine? Book a Strategy Call
Frontlines.io | Where B2B Founders Talk GTM.
Strategic Communications Advisory For Visionary Founders
Actionable
Takeaways
Infuse Design in B2B Products:
Prioritize user experience and design in B2B products to meet the high standards set by consumer apps. A seamless, intuitive interface can differentiate your product in a competitive market.
Address Specific Market Pain Points:
Focus on solving concrete problems that your target market faces daily. Pequity’s emphasis on flexible, scalable compensation solutions meets the unique needs of mid-market and enterprise companies.
Leverage Domain Expertise:
Building a successful product often requires deep domain knowledge. Caitlin’s extensive experience in compensation management provided invaluable insights that shaped Pequity’s offerings.
Strategic Product Positioning:
Align your product’s value proposition with current market demands. Pequity’s focus on pay transparency and compliance helps companies navigate new regulations while ensuring fair compensation.
Maintain a Customer-Centric Approach:
Continuously engage with customers to understand their evolving needs and ensure your product meets those needs effectively. Pequity’s proactive customer support and consulting services enhance its value proposition.
Conversation
Highlights
Building a New Category in HR Tech: How Pequity is Redefining Compensation Software
Most B2B software products start with a problem. For Pequity, it started with 20 spreadsheets. When Caitlin Canop, then a compensation manager at Cruise Automation, found herself building custom spreadsheet solutions to manage comp data for a rapidly scaling company, she didn’t just see a problem – she saw an opportunity to create an entirely new software category.
In a recent episode of Category Visionaries, Warren Lebovics shared how Pequity is pioneering what they call “compensation tech” – a new category that sits at the intersection of HR and finance. But unlike many startup stories that begin with a founder’s vision, Pequity’s origin story is rooted in deep industry expertise and hands-on problem-solving.
“Her solution was spreadsheet based with, I think, some app script involved and a little bit of zapier thrown in there as well,” Warren explains, describing how his co-founder (and wife) Caitlin built Cruise’s compensation system. This makeshift solution, while functional, highlighted a crucial gap in the market: neither applicant tracking systems (ATS) nor human resource information systems (HRIS) could effectively handle the complexities of modern compensation management.
The validation came through consulting. After leaving Cruise, Caitlin found herself fielding calls from HR leaders across the industry. “They called her and said, hey, can you do what you did for me at cruise, or can you repeat what you did at google and come in? We’ll pay you $20,000 for a couple of weeks of work to get that up and running.”
This consulting work provided more than just validation – it offered deep insights into the market’s needs and pain points. After about 20 consulting projects, the pattern was clear: companies needed a better solution for compensation management.
What makes Pequity’s approach unique is their focus on user experience in a category traditionally dominated by clunky, complex tools. “B to C feels amazing. You cannot launch a B to C product that doesn’t just feel incredible and have all these delight factors, but for a very long time with B to B, you can launch something that kind of feels like crap and it was okay,” Warren notes. This philosophy has shaped their product development approach, bringing consumer-grade design to enterprise software.
The strategy is paying off. Even in the challenging tech environment of 2022, Pequity managed to double their revenue. Their success stems from a deliberate focus on product excellence over aggressive sales tactics. “We don’t oversell. We really do want to just provide an amazing experience,” Warren explains. This approach has led to an interesting pattern: customers who initially choose cheaper alternatives often return to Pequity after experiencing the limitations of less sophisticated solutions.
But perhaps the most interesting aspect of Pequity’s story is their mission-driven approach to category creation. They’re not just building software; they’re addressing a systemic issue in tech compensation. As Warren shares, “Compensation is directly going to contribute to obviously pay equity and gender gaps and race gaps and just general pay gaps. And where it’s mostly going to happen, actually, is in your 500 to 5000 person companies.”
For founders looking to create new categories, Pequity’s journey offers several key insights. First, deep domain expertise matters – their understanding of compensation challenges comes from years of hands-on experience. Second, product excellence can be a differentiator even in crowded markets. As Warren puts it, “If you’re not in a highly competitive market, I think it’s worth reassessing if the market’s big enough and if you’re actually going to be able to make a dent.”
The compensation tech category represents more than just a new software vertical – it’s an example of how focusing on a specific, complex problem and solving it exceptionally well can create space for category leadership, even in the crowded HR tech landscape.
Recommended Founder
Interviews
Cristina Bunea
Head of Marketing of Paraform
From Code to Content: Building B2B Marketing That People Crave
Matt Watson
CEO and Founder of Origin
Matt Watson, CEO and Founder of Origin: Over $70 Million Raised to Make Financial Wellness the Next Big Employee Perk
Kian Katanforoosh
CEO & Founder of Workera
Kian Katanforoosh, CEO of Workera: $21 Million Raised to Build the Skills Intelligence Category
Joseph Fung
CEO of Uvaro
Joseph Fung, CEO of Uvaro: $15 Million Raised to Build the Career Success Platform Category
Jared Pope
CEO and Co-Founder of Work Shield
Jared Pope, CEO and Co-Founder of Work Shield: $12 Million Raised to Eliminate Workplace Misconduct
Jaclyn Chen
CEO of Benepass
Jaclyn Chen, CEO of Benepass: $14 Million Raised to Build the Future of Employee Benefits Management
Tomer London
Co-founder and Chief Product Officer of Gusto
How Gusto scaled to 400,000+ customers without traditional sales: The consumer-first B2B playbook ($9.5B Valuation)
Daniel Birkholm
Founder & CEO of TalentHub
Daniel Birkholm, TalentHub: $6 Million Raised to Transform How Organizations Measure and Improve Their Hiring Experience
Nishika de Rosairo
CEO and Founder of HumanQ
Nishika de Rosairo, CEO and Founder of HumanQ: $3.5 Million Raised to Build the Future of Human Development
Andres Blank
Co-founder & CEO of Fetcher
Andres Blank, CEO of Fetcher: $40 Million+ Raised to Build the Future of Recruiting Automation
Charlotte Dales
CEO & Co-Founder of Inclusively
Charlotte Dales, CEO & Co-Founder of Inclusively: $20 Million Raised to Transform Workplace Personalization
Sebastian Schüller
Co-founder of HiPeople
Sebastian Schüller, Co-founder of HiPeople: $7 Million Raised to Develop Data-Driven Augmentation for Hiring Teams
Mike Fitzsimmons
CEO and Co-Founder of Crosschq
Mike Fitzsimmons, CEO & Co-Founder of Crosschq: $35 Million Raised to Power the Future of AI-Driven Hiring Intelligence
Tuck Hauptfuhrer
CEO & Co-Founder of EarnBetter
Tuck Hauptfuhrer, CEO & Co-Founder of EarnBetter: $4.5 Million Raised to Build the Future of AI-Powered Job Search
Alex Cwirko-Godycki
How Pave is Defining and Dominating the Compensation Intelligence Category
Will Sealy
CEO and Co-Founder of Summer
Will Sealy, CEO and Co-Founder of Summer: Over $18 Million Raised to Help Organizations Provide Student Loan Benefits
Ben Zweig
CEO of Revelio Labs
Ben Zweig, CEO of Revelio Labs: $19 Million Raised to Build the Future of Workforce Intelligence
Achuthanand Ravi
Founder & CEO of Kula
Achuthanand Ravi, CEO of Kula: $14 Million Raised to Build the Future of Recruiting
René Janssen
CEO and Founder of Lepaya
René Janssen, CEO & Founder of Lepaya: $85 Million Raised to Build the Future of Employee Training
Sam Naficy
CEO of Prodoscore
Sam Naficy, CEO of Prodoscore: $4 Million Raised to Build the Future of Employee Productivity Measurement
Rob Sadow
CEO & Co-Founder of Scoop
Rob Sadow, CEO & Co-Founder of Scoop: $8 Million Raised to Build the Future of Hybrid Team Coordination
Barb Hyman
CEO & Founder of Sapia AI
Barb Hyman, CEO & Founder of Sapia AI: $21 Million Raised to Build the Future of AI-Powered Recruiting
Nicole Fuselier
VP of Marketing of Bonusly
Revenue-Driven Marketing: Insights from Nicole Fuselier of Bonusly
Wes Winham Winler
Founder/CEO of Woven
Wes Winham Winler, CEO of Woven: $11 Million Raised to Transform How Companies Recruit and Hire Developers
Holly Tate
CMO of Leadr
Holly Tate, CMO of Leadr: Building the Future of People Development Platforms
Laura McGee
Founder and CEO of Diversio
Laura McGee, CEO of Diversio: $6 Million Raised to Help Organizations Measure and Improve DEI
Ian White
Founder of ChartHop
Ian White, Founder, CEO and CTO of ChartHop: $74 Million Raised to Build the Future of PeopleOps
Kevin Busque
CEO and Founder of Guideline
Kevin Busque, CEO and Founder of Guideline: $339 Million Raised to Help More Small Businesses Offer Retirement Plans
Jerome Ternynck
Founder and CEO of SmartRecruiters
Jerome Ternynck: the Story of SmartRecruiter ($1.5 Billion Valuation)
Virgile Raingeard
CEO of Figures
Virgile Raingeard, CEO of Figures: €8.5 Million Raised to Build the Future of Compensation Intelligence
Jeremy Johnson
CEO & Co-Founder of Andela
Jeremy Johnson: the Story of Andela ($1.5 Billion Valuation)
Stephen Johnston
CEO and Founder of GoodJob
Stephen Johnston, CEO and Founder of GoodJob: $9 Million Raised to Power the Future of Human Capital Management
Marcelo Lebre
President of Remote
Marcelo Lebre, Co-founder & COO of Remote: Nearly $500 Million Raised to Power the Distributed Workforce of the Future
Sammy Singh
CEO and Co-Founder of WurkNow
Sammy Singh, CEO and Co-Founder of WurkNow: $15 Million Raised to Power the Future of Staffing
Kelsey Bishop
Founder and CEO of Candor
Kelsey Bishop, Founder and CEO of Candor: $5 Million Raised to Build the Future of Professional Relationship-Building
Sloane Barbour
CEO & Founder of engin
Sloane Barbour, CEO & Founder of engin: $4 Million Raised to Transform AI-Powered Recruiting
Omer Glass
Co-Founder and CEO of GrowthSpace
Omer Glass, Co-Founder and CEO of GrowthSpace: $44 Million Raised to Build the Future of Employee Development
Nitzan Yudan
Nitzan Yudan, CEO & Founder of Benivo: $30 Million Raised to Transform Global Workforce Mobility
Jennifer Dulski
CEO & Founder of Rising Team
Jennifer Dulski, CEO & Founder of Rising Team: $11 Million Raised to Build the Future of Team Performance
Tony Jamous
CEO of Oyster
Tony Jamous, CEO of Oyster: $220+ Million Raised to Build the Global Employment Platform (GEP) Category
John Kim
Co-Founder & CEO of Paraform
John Kim, Co-Founder & CEO of Paraform: $5 Million Raised to Build the Future of Recruiting with a Marketplace for Specialized Talent
Ben Sesser
CEO & Founder of BrightHire
Ben Sesser, CEO & Founder of BrightHire: $36 Million Raised to Build the Interview Intelligence Category
Anthony Mironov
CEO and Co-Founder of Wingspan
Anthony Mironov, CEO and Co-Founder of Wingspan: $30 Million Raised to Power the Contractor Experience of the Future
Lucas Mendes
Co-Founder and CEO of Revelo
Lucas Mendes, CEO of Revelo: $48.7 Million Raised to Build the Backbone of Tech Talent for the Age of AI
Tom Griffiths
CEO and Co-founder of Hone
Tom Griffiths, CEO of Hone: $50 Million Raised to Build the Future of Corporate Training
Prem Kumar
CEO | Co-founder of Humanly
Prem Kumar, CEO of Humanly.io: $5.5 Million Raised to Build the Conversational Hiring Category
Jason Radisson
CEO and Founder of Movo
Jason Radisson, CEO and Founder of Movo: Over $9 Million Raised to Build the Future of HR Automation
Erik Braund
CEO & Founder of Katmai
Erik Braund, CEO & Founder of Katmai: $30 Million Raised to Build the Future of Virtual Work
Brett Martin
President and Co-Founder of Kumospace
Brett Martin, President and Co-Founder of Kumospace: $25 Million Raised to Power the Future of Virtual Offices
Siadhal Magos
CEO & Co-Founder of Metaview
Siadhal Magos, CEO & Co-Founder of Metaview: $14 Million Raised to Power the Future of AI-Driven Hiring
Matt Pierce
CEO of Immediate
Matt Pierce, CEO of Immediate: $15 Million Raised to Eliminate the Costly Price of Financial Stress in the Workforce
Barbra Gago
CEO and Founder of Pando
Barbra Gago, CEO and Founder of Pando: $7 Million Raised to Build the Future of Career Advancement
Peter Briffett
CEO and Co-Founder of Wagestream
Peter Briffett, CEO and Co-Founder of Wagestream: $370 Million Raised to Provide Financial Wellbeing for Every Frontline Employee
Fraser Patterson
CEO and Founder of Skillit
Fraser Patterson, CEO and Founder of Skillit: $13 Million Raised to Tackle the Skilled Labor Crisis in Construction
Hanna Asmussen
CEO and Co-Founder of Localyze
Hanna Asmussen, CEO and Co-Founder of Localyze: Over $48 Million Raised to Build the Leading Global Mobility Platform for Companies and Employees
Agapitos Diakogiannis
Co-founder & CEO of Seafair
Agapitos Diakogiannis, CEO of Seafair: $6.5 Million Raised to Build the Future of Maritime Recruitment
Sid Upadhyay
Co-Founder & CEO of WizeHire
Sid Upadhyay, Co-Founder & CEO at WizeHire: Over $30 Million Raised to Help SMBs Hire Great Talent
Karoli Hindriks
Founder of Jobbatical
Karoli Hindriks, Founder of Jobbatical: $23 Million Raised to Build the Future of Global Mobility with AI-Powered Relocation Solutions
Jason Lavender
CEO of Electives
Jason Lavender, CEO of Electives: $10M Raised to Redefine Corporate Training
Raghu Gollamudi
CEO and Co-Founder of Included
Raghu Gollamudi, CEO and Co-Founder of Included: $5.4 Million Raised to Build the Future of HR Analytics
Rob Whalen
CEO of PTO Exchange
Rob Whalen, CEO of PTO Exchange: $5M Raised to Empower Companies to Rethink Paid Time Off
Hanns Aderhold
Founder and CEO of Cobrainer
Hanns Aderhold, Founder and CEO of Cobrainer: $21 Million Raised to Build the Future of Skills Data Platforms
Andy Berman
CEO and Founder of Vowel
Andy Berman, CEO and Founder of Vowel: $13 Million Raised to Power the Future of Meetings
Michael Ioffe
CEO & Co-Founder of Arist
Michael Ioffe, CEO & Co-Founder of Arist: $16 Million Raised to Build the Future of Autonomous L&D
Chandler Malone
Founder of Bootup
Chandler Malone, Founder of Bootup: $2 Million Raised to Solve the Tech Talent Crisis
Nancy Xu
CEO & Founder of Moonhub
Nancy Xu, CEO & Founder of Moonhub: $10 Million Raised to Power the Future of AI-Driven Recruiting
Matthew Sydney
CEO & Founder of Beanstalk Benefits
Matthew Sydney, CEO & Founder of Beanstalk Benefits: $7.5 Million Raised to Build the Future of On-Demand Employee Benefits
Josh Merrill
CEO of Confirm
Josh Merrill, CEO of Confirm: Over $11 Million Raised to End the Performance Review Nightmare
Allen Narcisse
Founder & CEO of Gigs
Allen Narcisse, Founder & CEO of Gigs: $5.7 Million Raised to Build the Future of Blue Collar Hiring
Marcelo Lebre
President of Remote
Marcelo Lebre: the Story of Remote ($3 Billion+ Valuation)
Chris Johnson
Growth Marketing Lead of Gun.IO
Chris Johnson, Growth Marketing Lead at Gun.IO: Competing in the Future of Freelance Developer Marketplaces
Albert Owusu-Asare
CEO & Co-Founder of Cadana
Albert Owusu-Asare, CEO & Co-Founder of Cadana: $7 Million Raised to Build the Future of Global Payroll Infrastructure
Amit Bhatia
CEO & Co-Founder of Data People
Amit Bhatia, Co-Founder and CEO of Data People: $21 Million Raised to Build the Future of Recruiting Intelligence