Executive Summary
AbsenceSoft was already carving out its place as a leader in employee leave management software when Norwest joined as a majority investor in 2021. With HR teams facing mounting pressures from evolving compliance regulations, the COVID-19 pandemic, and rising employee expectations, AbsenceSoft’s modern SaaS platform was well-positioned to help companies streamline processes and improve retention.
Over the next three years, AbsenceSoft and Norwest partnered closely to accelerate growth and innovation. Together, we hired strategic executives, facilitated a major acquisition, optimized the company’s infrastructure, and expanded its customer base. By 2024, AbsenceSoft had grown ARR more than 5x, achieved its first cash-flow-positive year, and delivered meaningful shareholder value — culminating in its acquisition by Luminate Capital.
AbsenceSoft was founded in 2013 with a clear mission: make managing employee leave and accommodations simple, compliant, and people centric. For many HR teams, the complexity of FMLA, ADA, disability, and other leave types created financial risk, legal exposure, and employee dissatisfaction. AbsenceSoft’s platform gave organizations — from small businesses to Fortune 500 companies — a streamlined way to handle compliance while improving employee experience.
By 2020, AbsenceSoft had achieved record-breaking results with over 100% year-over-year growth. As the pandemic unfolded, the shifting regulatory landscape became an even larger challenge for companies. Remote work, mental health considerations, and heightened expectations for workplace support put leave management squarely in the spotlight. Employers needed tools that could keep their organizations compliant, reduce administrative burden, and help retain talent in a competitive labor market.
AbsenceSoft was already rising to the occasion, and Norwest saw an opportunity to help the company accelerate its momentum and expand its market reach.
As Norwest General Partner Ran Ding shared at the time of investment, “In the age of remote and dispersed work, it is more important than ever to empower and support employees, especially in times of need.”
A Partnership Rooted in Strategic Support
Norwest’s first step was building trust with AbsenceSoft’s leadership team and Bow River Capital, the company’s prior backer. Recognizing the potential for accelerated growth, AbsenceSoft and Bow River Capital welcomed Norwest as a majority investor in July 2021. The deal was closed quickly to support the company’s business goals and long-term vision.
Soon after the investment, AbsenceSoft welcomed Mark Schiff as CEO, a SaaS veteran with experience scaling businesses well past $100 million in revenue.
Over the next three years, Norwest’s strategic expertise, industry insights, and supportive “invited guest” investment approach played an instrumental role in AbsenceSoft’s growth. Contributions included:
- Strengthened the leadership bench, recruiting a CRO, CMO, CCO, and executive chairman of the board.
- Acquired and integrated Presagia, the company’s closest competitor, within six months of the investment.
- Modernized the technology stack, reducing technical debt and prioritizing key product innovations.
- Turned professional services around, moving from a negative-margin business line to materially positive.
- Optimized go-to-market operations, building a more scalable sales and marketing engine guided by Norwest’s advisors.
As Mark recalls: “The Norwest team was a strategic partner that made key contributions to our accelerated growth. They combined industry expertise with a supportive, high-EQ approach to help us enhance our operational infrastructure and deliver new product innovations to market.”
“The Norwest team was a strategic partner that made key contributions to our accelerated growth. They combined industry expertise with a supportive, high-EQ approach to help us enhance our operational infrastructure and deliver new product innovations to market.”
Cementing AbsenceSoft’s Market Leadership
The impact of these changes was profound. In just three years, AbsenceSoft:
- Grew ARR more than 5x, maintaining 30%+ YoY growth each year.
- Expanded its customer base by 2.5x+.
- Improved professional services margins to 10%+.
- Transitioned from cash-flow negative to cash-flow positive, generating material cash for the first time in company history.
- Increased net revenue retention to 110%+.
- Grew headcount by ~2.5x.
By 2024, AbsenceSoft had cemented its leadership in absence management, delivering both business performance and improved employee experiences for customers. That year, the company was acquired by Luminate Capital.
“This transformation would not have been possible without the superb team at Norwest,” says Mark Schiff. “We want to profusely thank Norwest and our board for a highly productive and successful partnership.”
The feeling is mutual. Our team is proud to have partnered with Mark and the AbsenceSoft team, and we look forward to watching the company’s continued success under Luminate’s guidance.
“This transformation would not have been possible without the superb team at Norwest. We want to profusely thank Norwest and our board for a highly productive and successful partnership.”
