The funding helps BetterUp reach a $4.7B valuation. Here are the top-line bullets you need to know.
BetterUp, a leadership development platform, has raised $300M in a Series E. The round drew participation from Lightspeed Venture Partners, ICONIQ Growth, Salesforce Ventures, SV Angel, and Mubadala Investment Company, among others.
HOW’S THE COMPANY PERFORMING?
- California-based BetterUp utilizes AI technology and behavioral science to offer personalized coaching and mental health development programs to employers looking to enhance employee well-being. Its programs include interactive professional development courses as well as analytics for monitoring employee growth.
- The company has over 3,000 coaches on its platform and caters to more than 380 companies in 46 languages across 90 countries. Its customer base has increased by 80% in 7 months and includes NASA, Chevron, Hilton Worldwide, and Snap.
- The company also reported reaching $100M in annual recurring revenue (ARR) and recorded a net revenue retention rate of more than 170%.
- BetterUp acquired Motive, an employee experience platform, and Impraise, an employee growth software developer, earlier this year.
- The company employs more than 270 people.
WHY DOES THE MARKET MATTER?
- The global corporate wellness market is expected to grow at a CAGR of 7% and reach a value of $93.4B by 2028, according to Grand View Research.
- The increasing convenience of virtual support and consultation and the rising emphasis on mental healthcare have contributed to market growth.
- The need for virtual mental health counseling and support services has grown amid the pandemic, which has contributed to market growth as well.
- Several investors are investing in digital health companies, particularly those related to mental and behavioral health. In Q3’21, mental health companies saw $3.1B in investor funding, according to Rock Health.