US-based employee wellness startup BetterUp Inc. raised US$ 125 million at a US$ 1.73 billion valuation on 25 February 2021. The capital raised will be utilized by the company to expand overseas.
Investors: The investment was led by Iconiq Growth, with participation from existing investors Lightspeed Venture Partners, Threshold Ventures and Plus Capital. New investors who joined the round include Salesforce Ventures, Sapphire Ventures and Mubadala Capital. BetterUp has raised US$ 300 million to date.
About BetterUp
Founded in 2013 by Alexi Robichaux and Eddie Medina, BetterUp is a mobile-based leadership development platform. It uses a holistic and science-backed methodology to develop new behaviours and mindsets that enable high performance amidst constant and dynamic changes in the workplace. It provides on-demand, virtual coaching sessions through which users can practice and reinforce new behaviours and skills. All the employee’s individual growth is measured and tracked by the platform. The BetterUp team consists of behavioural scientists, talent management strategists and consumer product experts who are passionate about helping people become the best version of themselves.
BetterUp is used by Fortune 500 companies including Genentech, Logitech and Workday. It aims to inspire employees to build the required skills that will help them both personally and in their professional careers. BetterUp also works with NASA and Snap Inc., helping their employees with a network of performance coaches, mentors and mental health counselling. With the help of BetterUp’s offerings, companies can improve their diversity and inclusion efforts.
The company claims that in the past year, it more than doubled its annual recurring revenue and grew its entire customer base by 80 per cent. It also recorded a net revenue retention rate of over 140%.
When it comes to mental health, BetterUp has partnered with a number of startups like Modern Health and Lyra Therapeutics Inc. It claims that the number of coaching sessions conducted by the company has more than doubled year-over-year. “There’s room for several multibillion-dollar businesses in the space. People are increasingly recognizing the importance of mental health fitness,” said Emily Melton, a managing partner at Threshold Ventures.
What the CEO has to say: “Some of the common uses for BetterUp’s services involve first-time managers or new parents. During the coronavirus pandemic, reducing stress and anxiety has been a focus.” — Chief Executive Officer Alexi Robichaux.
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