Parento Secures $5.9M Seed II Funding for Parental Leave Solutions

On September 9, 2025, Parento, the leading provider of comprehensive paid parental leave (PPL) insurance, announced it has successfully completed a Seed II funding round raising $5.9 million. The financing round was led by ResilienceVC, with significant participation from various esteemed investors, including Kapor Capital, Bread and Butter Ventures, Operator Stack, and Coyote Ventures, bringing Parento's total funding to $10.3 million.

As the demand for paid parental leave continues to rise among both employers and employees, small and mid-sized businesses face significant challenges in providing such benefits due to financial and administrative burdens. Traditional parental leave approaches can lead to unpredictable cash flows, particularly when several employees take leave simultaneously, while alternative methods, like short-term disability, have limited reach, leaving a vast majority of workers without access to essential parental leave benefits.

Dirk Doebler, the Founder and CEO of Parento, stated: "Parenthood is not gendered, and paid parental leave should be accessible to every workplace prioritizing employee wellness, talent acquisition, and retention. As the demand for parental support grows and the definitions of family evolve, we recognize the systemic need for an effective solution. Parento is committed to making paid parental leave accessible for every company, regardless of size or financial capability."

A Unique Approach to Parental Leave

Parento’s three-in-one model distinguishes itself by blending customizable paid parental leave insurance with management services and personalized coaching. This integrated approach not only encourages a higher return rate post-leave—95% return compared to just 60-65% for self-funded programs—but also significantly improves employee engagement, with 10% participating in one-on-one coaching services, far surpassing the average 1% utilization seen in traditional Employee Assistance Programs.

Interestingly, while only 5% of working men take over two weeks off after the birth of their youngest child, 46% of claims at Parento are from males taking leave, indicating a cultural shift supported by their personalized coaching services.

Unlike competitors that mainly focus on consulting for policy creation, Parento offers a tangible insurance product that provides up to 100% financial coverage. This innovative approach has allowed Parento to cater to a diverse array of industries often overlooked in family-friendly policy discussions. Notably, 25% of its clients operate within the nonprofit and manufacturing sectors, which typically contend with tight budgets and limited HR resources.

Expanding Accessibility

With the new capital secured from the funding round, Parento aims to accelerate its expansion efforts across product development, sales, and marketing, while also adding new insurance offerings. Noteworthy developments include a partnership with the International Union of Operating Engineers (IUOE), marking an important step in reaching blue-collar workforces located in states with non-paid family leave provisions. This partnership also enables Parento's first international expansion to serve union members in Canada.

Additionally, Parento has established partnerships with several Professional Employer Organizations (PEOs), including one of the largest in the U.S. that serves more than 500,000 clients. Such partnerships facilitate access to small businesses through established channels, allowing Parento to further its mission of democratizing access to familial leave benefit.

As Parento's mission aligns closely with social equity goals, the recent board addition of ResilienceVC—a firm comprised of all-female members aside from Doebler—underscores their commitment to addressing workplace disparities that particularly affect women while maintaining an inclusive and gender-neutral approach to parental leave.

“We’re excited to support Parento in addressing one of the most crucial workplace equity issues of our time,” said Tahira Dosani, co-founder and managing partner at ResilienceVC. She continued, “Their method of transforming unpredictable expenses into manageable monthly costs while ensuring comprehensive support is crucial for attracting and retaining parents in the workforce**.”

Founded in 2019, Parento stands at the forefront of balancing parental rights and workplace responsibilities, setting a new standard for how businesses can support their employees' families. By converting unpredictable leave costs into predictable expenses, they empower small to mid-sized companies to offer critical parental leave benefits capable of enhancing both employee well-being and organizational performance.

For further information, visit Parento's website.