Connecting with Frontline Workers

AskNicely Secures Funding for Frontline Worker Empowerment

AskNicely has recently attracted investment for its application designed to enhance the success of shift and frontline workers. This comes as businesses increasingly acknowledge the significant value these employees contribute to their financial performance and recognize the potential of technology to empower them.

Company Background and Development

Founded in 2014, AskNicely, headquartered in Portland, Oregon, with a technology team based in New Zealand, initially developed SaaS customer experience management tools. Co-founder and CEO Aaron Ward explained to TechCrunch that these tools were created for businesses heavily reliant on human interaction.

The platform integrates Net Promoter Score data, workflow management, employee recognition, feedback mechanisms, coaching resources, and actionable insights. This allows businesses to effectively lead through the contributions of their frontline workforce.

The Shift in Business Perspective

“Traditionally, business leadership has been viewed as a top-down approach, but experience demonstrates that crucial information can be lost in transmission,” Ward stated. “The key lies in maintaining constant feedback loops and making coaching and feedback delivery a regular practice, rather than infrequent events.”

Series B Funding Announcement

The company announced a $32 million Series B funding round led by Five Elms Capital, with participation from existing investors Nexus Venture Partners and Blackbird. Ryan Mandl from Five Elms will be joining AskNicely’s board of directors as a result of this investment.

This new funding brings AskNicely’s total fundraising to $47 million. The company previously secured its Series A funding in January 2019.

Pandemic Impact and Strategic Response

Ward indicated that the global pandemic played a role in the decision to seek additional capital. Many of the company’s service-based clients were temporarily forced to close, prompting a consideration of potential strategic pivots.

Instead of altering its core mission, AskNicely chose to invest in product development and marketing during the pandemic’s downtime. These efforts proved successful, allowing Ward to demonstrate the potential of this new technology to investors.

First-Mover Advantage

Ward believes that this period of focused development has provided AskNicely with a significant advantage in the market. “We were the first to market with a solution specifically focused on the evolving technological needs of this workforce,” he added.

The additional capital will be used to further enhance the product offering and expand sales and marketing initiatives as the platform is introduced to a wider audience.

A Large and Growing Market

With 80% of the global workforce classified as frontline employees in sectors like retail, food service, and healthcare, Ward emphasizes the substantial market opportunity.

Other companies attracting venture capital to address this underserved market include:

Blink: An application for frontline worker engagement with IT services and peer communication.
Shiftsmart: A marketplace connecting shift workers with employers, having raised $95 million.
When I Work: A messaging app securing $200 million in funding.
Fountain: A platform raising $85 million.
Seasoned: A tool for restaurant workers, garnering $18.7 million.
Homebase: Securing $71 million in funding.
Workiz: Focused on home service professionals, raising $13 million.

Future Growth and Expansion

AskNicely currently employs over 60 people and plans to double its workforce within the next year. While Ward refrained from disclosing specific revenue figures, he described the company as a “high-growth SaaS business.”

The company currently serves 1,300 customers primarily in North America, Australia, and Europe. It has reached a point where each new customer represents ten times the value of previous acquisitions.

A Commitment to Frontline Worker Success

“Our mission is to improve the working conditions for frontline employees, and in the last two years, companies have begun to fully appreciate their contributions,” Ward concluded. “These workers have historically been underserved by technology and often undervalued. We are dedicated to their success, but recognize the need for collaboration and partnerships to create lasting change.”