Lattice announced a $60 million Series E Round of venture capital for its performance management app. This puts its total raised at $154 million. It also announced a new $1 billion valuation with the round, which edges the firm into “unicorn” territory. In its announcement, Lattice listed 225 employees, 2500 customers, and 500K+ employees using the tool globally. With an average customer size of 200 employees, that puts Lattice squarely in the middle market.
Having launched in 2015 with a focus on performance management, they added employee engagement surveys in 2018, and career pathing in 2020. Today’s announcement talks about funding new products, new geographic markets, and team growth. In July of 2020 Lattice closed its $45 million Series D round, stressing a focus on its product roadmap.
Change is accelerating in the areas where Lattice’s product(s) have historically focused. Performance management has moved away from forced rankings and annual reviews to more goal-based approaches incorporating scheduled formal manager/employee 1:1s and the capture of formal and informal feedback on an ongoing and even ad hoc basis. This puts the analytics offering for any performance HR tech provider front and center. Engagement measurement apps have also moved beyond pulse surveys to incorporate the broader concepts of culture and employee experience across all of the touchpoints an employee has with an employer. HR and business leaders require measurement that can be correlated throughout the employee experience in order to make better data-driven decisions about the business impact of HR initiatives.
Talent management suites like Cornerstone OnDemand have put together product offerings that offer HR and employee workflow from recruiting through onboarding, learning, and into HR with analytics offerings across the suite. Employee Experience-focused providers like Culture Amp have moved aggressively to provide culture and employee experience insights and analytics that lend themselves to correlating HR and People leadership to business impact.
With Lattice’s 2020 release of “Grow,” its career pathing product, it edges closer to helping employees address the current trend of upskilling/reskilling/internal mobility. The missing ingredient? Learning.
With the changing work and HR tech market landscape it seems product roadmap is the right place for Lattice to focus its latest investment, too. Perhaps a learning module is in Lattice’s future.
In 2020 $1.4 billion was invested globally in HR technology focused on talent management. Get the full report for free on 2020 global HR technology VC here.
Source: Lattice Series E