Mental health startup BetterUp banks hefty funding round at nearly $5B valuation

Launched in 2013, BetterUp has more than 3,000 coaches on its network and has expanded the number of behavioral scientists by 50%. It also provides analytics and real-time insights to help track employee progress. (BetterUp)

BetterUp, a buzzy mental health startup, clinches $300 million in a series E fundraise to accelerate its international growth and drive new product innovation.

The company, which provides app-based employee coaching and mental health assistance, reports that the funding round brings its valuation to $4.7 billion. 

Wellington Management, ICONIQ Growth and Lightspeed Venture Partners led the round with participation from existing investors Salesforce Ventures and Mubadala Investment Company, also customers of BetterUp, along with Sapphire Ventures, Morningside Group, SV Angel and PLUS Capital.

The San Francisco-based BetterUp, which hired Prince Harry as its chief impact officer in March, provides employee coaching and mental health assistance through its mobile app.

The round closely follows BetterUp’s $125 million series D in February 2021. The company has raised $600 million to date.

“We are in the midst of the great global awakening surrounding hybrid work, mental health and well-being, and diversity and inclusion,” said Alexi Robichaux, CEO and co-founder, BetterUp in a statement. “Never has the pressure been greater on our global workforce, and as we collectively redefine the workplace, it’s clear that every organization and every employee critically need support, growth, and transformation.

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"This funding will continue to accelerate our mission to bring the most comprehensive and powerful suite of tools to individuals and help them thrive in their roles, unlock their peak performance, and live with purpose and clarity," Robichaux said.

Launched in 2013, BetterUp has more than 3,000 coaches on its network and has expanded the number of behavioral scientists by 50%. It also provides analytics and real-time insights to help track employee progress. It also offers one-on-one, specialist and on-demand coaching along with group sessions.

The company also reported that it has doubled its corporate employee headcount to over 500, and today serves more than 380 enterprise businesses including Hilton, Salesforce, bp, NASA and Chevron.

BetterUp recently opened new offices in Munich, London and Amsterdam, along with recent strategic acquisitions of advanced people experience platforms Motive and Impraise, announced last month.

The company plans to expand its work with large employers to deploy hyper-personalized solutions that support their workforces, such as BetterUp Care,  an integrated mental fitness offering. The products, which include 1:1 and group coaching, and on-demand coaching on topics that span diversity and inclusion, parenting, nutrition, and sleep, combine behavioral science, AI technology and human interaction, according to the company.

BetterUp executives report the company grew its entire customer base by 80%, recorded a net revenue retention rate of over 170% and reached $100 million in annual recurring revenue in July of this year. 

“It’s rare to see a company engage in continuous category creation, but that’s exactly what iconic companies do. And that’s why we’re so proud to lead another round of financing in BetterUp,” said Doug Pepper, General Partner at ICONIQ Growth in a statement.

“What the last year has taught us, in the midst of the workplace revolution, is that there is an ever-growing demand for employee well-being and support,” said Brent Hyder, president and chief people officer at Salesforce in a statement. “In BetterUp we found a partner that would allow teams across the world to navigate uncertainty, remote work, and virtual environments. BetterUp gave us the ability to scale personalized care across the organization, which has been invaluable to the team’s productivity and peak performance.”