SAN FRANCISCO — BetterUp, a mobile-based leadership development platform, has raised $26 million in Series B funding, bringing the total capital raised to $39 million. Lightspeed Venture Partners led the round with existing investors DFJ, Freestyle Capital, and Crosslink Capital participating. The additional funding will help the company accelerate its mission of helping professionals live with greater clarity, purpose, and passion through one-on-one coaching.
“If you ask top CEOs what the most important element of a company is, they will most likely tell you it’s their people. Yet companies still invest millions in outdated training methods like 400-page PowerPoint training classes that are failing to adequately train and prepare their people. If you were an executive, on a sports team, or even in school, you would have access to a coach,” said Alexi Robichaux, Co-Founder & CEO of BetterUp. “BetterUp democratizes professional coaching so that those who need it most— emerging leaders and employees at every stage of their career— have access to this effective, personalized method of leadership training.”
The corporate training market tops $130 billion globally, yet many of these programs fail to deliver the transformative change required of organizations today. While companies take steps to combat challenges such as stress and disengagement, they typically over-invest in formal, outdated training methods while failing to focus on experiential opportunities. A McKinsey & Co survey revealed that just 25% of employees believe that their current training programs improved their performance at work. BetterUp solves this by bringing executive coaching to employees at all levels, at a fraction of the cost.
“BetterUp has created an entirely new category of leadership development which is now used by leading enterprise customers around the world,” said Will Kohler, Partner at Lightspeed Venture Partners. “With this new investment, BetterUp plans to hire more salespeople and developers to keep up with very strong demand, as well as continue to expand operations internationally.”
Companies including Genentech and Logitech have embraced BetterUp as a way to provide transformational change that accelerates employee performance and boosts retention. Customers see, on average, improvement of nine percent in resilience, a 14 percent increase in productivity, and jump 20 percentiles (compared to a national average) in teamwork and collaboration. On top of that, customers see unprecedented reductions in causes of turnover, with average decreases in stress of 15 percent and burnout of 10 percent. With BetterUp, Logitech employees cut their risk of burnout in half.
The BetterUp app matches each Member with a certified coach through an algorithm. Members meet with coaches via video or phone chat for weekly 30-minute sessions. 97% of the time, Members love the first coach they’re matched with. Guided by goals chosen by the user, the coach serves up virtual, bite-sized resources and exercises selected to support the individual’s particular needs. Coaches track their progress with in-depth dashboards, giving companies a measurable ROI that is supported by scientific and behavioral research. With the technology interface and its ability to augment the live coaches, BetterUp coaching can be more affordable, more convenient, and more readily accessible than traditional coaching.