US-based BetterUp, which is backed by Abu Dhabi’s Mubadala Investment Company, raised $ 300 million in a late-stage funding round, bringing the mental health firm’s valuation up to $ 4.7 billion, as the Covid-19 pandemic spurred the demand for mental well-being. being services, the company said.
The California-based company’s Series E funding round was led by Wellington Management, ICONIQ Growth and Lightspeed Venture Partners, it said in a statement Friday. Existing investors Mubadala Investment Company, Salesforce Ventures, Sapphire Ventures, Morningside Group, SV Angel and Plus Capital also participated in the latest round.
“We are in the midst of the great global awakening surrounding hybrid work, mental health and wellness, and diversity and inclusion,” said Alexi Robichaux, BetterUp CEO and co-founder. “This funding will continue to accelerate our mission to bring the most comprehensive and powerful set of tools to people and help them thrive in their roles, unlock their peak performance, and live with purpose and clarity.”
Funding comes before World Mental Health Day on Sunday. The Covid-19 pandemic has shaken the work culture, with millions of employees working remotely, leading to a radically different job landscape and a greater need to focus on supporting people’s mental well-being. This year, the focus of World Mental Health Day will be to expand access to quality mental health care.
The world has been unable to provide people with the mental health services they need, at a time when the Covid-19 pandemic is highlighting a growing need for mental health support, according to the World Health Organization. The increased demand for mental health services, which was further exacerbated during the Covid-19 crisis, is not being met with adequate levels of investment, resulting in a “disappointing” deficit, the WHO concluded in its new Atlas report. of Mental Health.
“We must heed and act in response to this wake-up call and dramatically accelerate scaling up investment in mental health, because there is no health without mental health,” said Dr Tedros Adhanom Ghebreyesus, WHO Director-General.
BetterUp, which hired Britain’s Prince Harry to become its impact director on March 23, provides online training and mental health services using artificial intelligence and behavioral science technology. BetterUp, founded in 2013, counts among its clients the parent company Google, Alphabet, Hilton, Warner Bros, Airbnb, Lyft, Nasa, Snap, Chevron and Salesforce, according to its website.
The Silicon Valley startup will use the funds to drive new product innovation that will “democratize coaching” for hundreds of thousands of employees in organizations, regardless of job title or level, he said. The funding will also fuel BetterUp’s international growth, after it recently opened new offices in Munich, London and Amsterdam.
The latest round of financing brings the total investment in the company to $ 600 million. It also follows a Series D round in February when the company raised $ 125 million and a valuation of $ 1.7 billion at the time.
“The pressure on our global workforce has never been greater, and as we collectively redefine the workplace, it is clear that every organization and every employee is critically in need of support, growth and transformation,” said Robichaux.
With a network of more than 3,000 trainers, BetterUp offers training in 46 languages in more than 90 countries, to more than 380 companies.
“What the past year has taught us, in the midst of the workplace revolution, is that there is an ever-increasing demand for well-being and support for employees,” said Brent Hyder, Salesforce president and chief personnel officer, also a BetterUp customer.
“At BetterUp we found a partner that would enable teams around the world to navigate uncertainty, remote work and virtual environments.”
Updated: October 9, 2021, 9:07 am