Welcome to the inaugural feature of "People behind the Payroll," a series dedicated to unveiling the brilliant minds and stories behind Rise’s innovative journey in revolutionizing payroll and people systems for distributed workforces.

Our first dialogue is with co-founder and CEO Hugo Finkelstein, a visionary who’s transforming the landscape of cryptocurrency payroll. Hugo shares insights into his entrepreneurial journey, the pivot that shaped Rise into the hybrid payroll solution provider it is today, and his vision for the future. Through this series, we aim to foster a deeper connection with our community by spotlighting the people propelling Rise forward.

So tell us, who is Hugo Finkelstein and what inspired him to venture into the cryptocurrency payroll space?‍

Well I think it’s fair to say that I’ve somewhat always had a knack for entrepreneurship. While at Babson College, I launched my first company which was an app where students could buy, sell and exchange goods on campus. It was here that my roommate introduced me to crypto [specifically Bitcoin and Ether]. I think what really drew me in was the potential to disintermediate transactions, especially within a peer-to-peer context.

My association with the world of cryptocurrencies got much stronger later on when I reconnected with an angel investor I had met prior who told me he was starting an exchange. This opportunity allowed me to use my experience in marketing and community building to contribute to a whole variety of blockchain projects which eventually formed the foundation for Rise!

Was the Rise of today always what you envisioned or did the company once wear a different mask?

Great Question! Rise has certainly gone through some changes over the years. Originally, we strived to create a better alternative to existing freelancer marketplaces such as Fiverr and Upwork. The hope was that by leveraging smart contracts and peer-to-peer transactions, we could empower independent contractors by improving their payment experiences. We knew this should be plausible as traditional platforms charged hefty commissions and would often delay payment withdrawals, creating obstacles for freelancers. We were strongly of the belief that blockchain technology could alleviate many of these pain-points for contractors completely.

Interesting! So then what was the reason for your change of tact?

If there is one thing that whole period taught us… It’s that building a two-sided marketplace from scratch is truly a task of mammoth proportions. After launching our product and raising some [limited] capital, we realised that the business model wasn't necessarily sustainable. We tried to differentiate ourselves from competitors but this wasn’t enough. As a result, it was decided that we would pause and conduct interviews with customers and prospects. It was here that we discovered a more significant opportunity: using the payment infrastructure we had built in tandem with a compliance layer to facilitate global payments for companies hiring international talent, including web3 businesses growing their teams and DAOs working with community contributors around the globe. These payments would be possible in both cryptographic and fiat payments. That pretty much paved that way for Rise being the hybrid payroll solution provider it is today.

Why exactly did you decide to focus on hybrid payroll solutions and what makes the mission Rise’s mission special to you?

For me, our mission definitely goes beyond business aspirations. As I have previously alluded to, my previous experience working with independent contractors enlightened me to how little empowerment there was within traditional marketplaces when it came to payments and financial freedoms. I'd watched workers be subject to super long payment times and sometimes, a real lack of transparency. I saw crypto technology as presenting an opportunity to relieve these limitations and reshape the future of work.

Truly inspiring! So shifting the focus back on the company, where do you see the biggest growth opportunities for Rise, both geographically and in terms of industry sectors?

So geographically, Rise has witnessed remarkable trends in countries facing difficult economic conditions such as inflation and currency instability. In places like Argentina, Brazil and other South American countries, there is a growing demand for stablecoin payouts. Independent contractors in these regions prefer receiving payments in stablecoins rather than local currencies as a means to mitigate compensation erosion. These of course are the exact kinds of scenarios where Rise can do a lot of good.

We primarily targeted web3 markets, protocols, DAOs, and crypto-friendly startups but have actually seen increasing interest from traditional businesses. They have distributed workforces with contractors across the globe who may request crypto payments. However, many executives, payroll managers, and CFOs lack the knowledge and tools needed to effectively scale crypto payouts, which is where we come in to bridge this gap by offering its infrastructure to handle and streamline crypto payouts for these businesses. In fact we have noticed that specific industries like software development agencies and gaming companies are showing considerable interest in our hybrid payroll services due to their reliance on contractors and the affinity of their workforces for blockchain technologies.

What upcoming features or services can we expect from Rise in the future and how do you think they will impact your users?

One of the most significant developments we expect this year is the launch of our Employer of Record service. Our implementation will incorporate an on-chain payroll engine, ensuring privacy, automatic tax deductions, pay stubs, and even healthcare packages. Generally speaking, it will enable companies who lack the required geographical entities to employ individuals using our own. All things going well, launch is slated for this year, initially in the United States and will expand to more countries throughout the year.

Plus, as part of our commitment to providing comprehensive services and maximising empowerment for workers, we have partnered with insurance providers like SafetyWing. These partnerships will offer contractors various options for insurance coverage, allowing them to have more security and flexibility in their work arrangements.”

We all know how much of a whirlwind the crypto space can be. How exactly does Rise stay ahead of changes within the market and regulatory landscape to ensure compliance and competitiveness?

We are fully aware of how fast the cryptocurrency space can change from the technology that underpins everything to the associated legalities. A big part in tackling this for us is ensuring access to experts at all times. We collaborate with professionals in HR, fintech, crypto and regulatory fields for up-to-date guidance and ensure compliance with changing regulations. I’m also very much a fan of keeping updated through industry resources like publications and podcasts which help me anticipate and adapt to market dynamics.

Understood! And of course for the mandatory: What hobbies and interests do you have outside of all things crypto and payroll?

Hahaha, well I follow a few sports teams, attend games and participate in soccer [football] games semi-frequently. I think I generally lean towards the more technological side of things and have recently been getting really stuck into emerging technologies such as AI. Food is also a huge thing for me and I’ve even taken mixology classes!

All that being said however, the most rewarding moments for me come during the weekly Rise meetings. Observing the team grow and witnessing the sense of family and culture being built around the company's mission bring me tonnes of joy. I also love hearing from satisfied customers and contractors who appreciate the efficient payments we facilitate, it’s incredibly fulfilling.

In wrapping up our conversation with Hugo, it's clear that the drive behind Rise extends far beyond just business metrics. It's about empowering workers and reshaping the future of work with cutting-edge technology. Hugo’s journey from a college entrepreneur to the helm of Rise exemplifies the innovative spirit and resilience that fuels the company's mission.

As Rise continues to navigate the evolving landscapes of blockchain, cryptocurrency and payroll, its commitment to transparency, empowerment, and compliance sets a high bar for the industry. Stay tuned for more inspiring stories from the people behind the payroll as we continue our look "Inside Rise."