BetterUp announced a $300 million Series E Round of venture capital at a new $4.7 billion valuation for its mental health and coaching app. This brings its total raised to $569.8 million. The round was led by Wellington Management.
BetterUp delivers one-to-one coaching, available on-demand 24/7 via a global marketplace, to improve leadership skills like resilience, growth mindset, creativity, and collaboration, and drive new ways of leading and a new performance level. By concentrating on the whole person and enabling each worker to be better, BetterUp aims to transform organizations from the inside out.
BetterUp became a unicorn in Q1 2021 after its $125 million Series D round and $1.73 billion valuation.
In its statement for the Series E BeterUp claims to have grown its entire customer base by 80 percent, recorded a net revenue retention rate of over 170%, and reached $100M in annual recurring revenue in July of this year. BetterUp also reports to have grown its coaching network to over 3,000 coaches, expanded the number of behavioral scientists by 50 percent, doubled corporate employee headcount to over 500, and today serves more than 380 enterprise businesses.
Coaching and mental wellbeing are getting increased attention from employers, tech providers, and investors. Trends that existed pre-COVID have been illuminated and driven increased adoption of not just tech, but company policy in this area. As high growth providers, like BetterUp, continue to raise funds that come with both increased valuations and investor expectations many analysts look to a looming stress test of the coaching marketplace model. Simply put, can the quality of coaching scale globally as the number of coaches increases, all working across multiple customers? Where to providers pull back from the marketplace and lean in more on technology or empowering coaches “in-house?”
$13.7 billion was invested globally in work tech through Q3 2021 across 299 deals. WorkTech Market Insiders can access insights and analysis of all of the deals in our Q3 report with a free membership.