ChartHop Raises $35M to Revolutionize Org Charts & People Analytics

The Growing Importance of People Analytics in Modern Organizations

Generally, human resources functions as a vital component within any organization. However, the increasing digitization of processes has broadened access to HR-related data. Consequently, more businesses are now interested in, and actively utilizing, the data traditionally built and managed by HR professionals.

ChartHop Secures $35 Million in Series B Funding

ChartHop, a startup specializing in a platform designed to address this evolving trend, has recently announced $35 million in funding. This investment follows a period of substantial growth for the company.

Andreessen Horowitz is leading the Series B round, having previously invested in ChartHop. Elad Gil and existing investors Cowboy Ventures and SemperVirens are also participating in this funding cycle. Sources indicate the round values ChartHop between $300 million and $400 million.

From Personal Need to Platform Creation

ChartHop was founded in New York by Ian White, who currently serves as CEO. His initial impetus for creating the platform stemmed from recognizing gaps in his own understanding while founding, operating, and ultimately selling his prior company, Sailthru – later acquired by CampaignMonitor.

White observed that while his previous company could develop the necessary technology, effectively managing and scaling the business fundamentally relied on understanding its people. This included comprehending departmental structures and the organization's overall functionality.

The Demand for Comprehensive People Analytics

He emphasized that structuring a clear organizational view was as crucial as the hiring process itself. Inspired by the robust analytics tools available for developers and sales teams, White sought to create similar capabilities for people analytics. His goal was to gain a deeper understanding of his team’s dynamics.

This understanding extends beyond a simple organizational chart – a significant undertaking in itself, as evidenced by the simultaneous launch of another org chart startup, The Org, in early 2020. It also encompasses retention strategies, employee satisfaction levels, turnover rates, diversity statistics, and predictive financial modeling based on compensation and hiring scenarios.

A Platform Built on Integration and Security

The ChartHop platform is designed with a modern tech architecture, featuring extensive integrations to enrich data input and facilitate data export for use in specialized applications. It also provides a user-friendly interface for data updates, coupled with robust security measures to protect confidential information.

While HR departments typically oversee the platform, access is granted to all employees within the organization, and it is widely utilized across various departments.

Rapid Growth and Market Validation

The demand for effective talent management software is clearly evident. Since 2019, ChartHop has grown from a one-person team – White himself – to a team of 75 employees. Currently, 130 corporate clients utilize its services, including many well-known companies, particularly within the technology sector.

Revenues have experienced a month-over-month growth rate of 17% over the past year, a period where remote work arrangements have heightened the need for a centralized platform to manage organizational information.

Investor Confidence and Future Outlook

“With HR and people functions so crucial to the growth and success of businesses, it’s unfortunate that most HR teams lack the critical people data to drive organizational decision making,” stated David Ulevitch, general partner at Andreessen Horowitz. “ChartHop is the solution to this all-too-common problem, and is built by company leaders who have felt this pain personally. ChartHop’s visual approach to people analytics allows leaders to make organizational planning and strategy decisions with confidence. We’re thrilled to lead ChartHop’s Series B because of their impressive growth, the company’s vision, and the terrific, mission-oriented team they’ve assembled.” Ulevitch also spearheaded the company’s seed funding round in February 2020.

Customer Testimonials Highlight Platform Value

Sara Howe, vice president of human resources at ZoomInfo, a ChartHop customer, shared, “Since implementing ChartHop earlier this year, we’ve seen significant improvement in our engagement with talent routines as they’re managed via ChartHop.” She further noted that employees appreciate the platform’s intuitive interface and centralized data view, while ZoomInfo’s leaders leverage ChartHop to ensure organizational structures support continued growth.