Culture Amp Raises $100M at $1.5B Valuation - Employee Engagement

Culture Amp Secures $100 Million in Series F Funding

Founded in 2009, Culture Amp initially focused on providing companies with anonymous employee surveys. However, the company’s scope has since broadened to assist employers in translating collected data into tangible improvements. Today, Culture Amp announced a successful $100 million Series F funding round, spearheaded by existing investors Sequoia Capital China and TDM Growth Partners.

Investment Details and Company Valuation

This latest funding round elevates Culture Amp’s valuation to $1.5 billion, representing more than a doubling of its valuation following the Series E funding in 2019. Salesforce Ventures joined as a new investor, alongside participation from Felicis Ventures, Blackbird Ventures, Index Ventures, Sapphire Ventures, Skip Capital, Grok Ventures, and Global Founders Capital.

Growing User Base and Client Portfolio

Currently, Culture Amp’s platform is utilized by over 4,000 organizations, representing a collective workforce of 25 million employees. Its clientele varies significantly in size, ranging from companies with 20-30 personnel to those exceeding 150,000 employees. Notable clients include Salesforce, Unilever, PwC, KIND, SoulCycle, and BigCommerce.

Expansion Beyond Surveys

Culture Amp has evolved beyond a simple survey platform. It now offers analytics tailored for managers, including predictive turnover analysis and team goal tracking capabilities.

Furthermore, the company fosters a robust online community where users can connect, share insights, and participate in workshops led by experts in diversity, equity, and inclusion. Recently, Culture Amp hosted a virtual iteration of its annual event, Culture First, attracting over 20,000 attendees.

Founder’s Perspective on the HR Tech Landscape

Didier Elzinga, founder and chief executive officer, views the Series F funding as a significant “validation of the HR space in general.” He stated to TechCrunch that the HR sector has historically been undervalued, but is now recognized as crucial.

“Companies are realizing that their people are their most valuable asset, and are increasingly focused on enhancing employee experiences,” Elzinga explained. “This funding round signifies a pivotal moment for the industry.”

Future Growth and Strategic Investments

While Culture Amp retains a substantial portion of its Series E funding, the new capital will facilitate operations “at a whole other level of scale.” Launched initially in Australia, the company derives approximately two-thirds of its revenue from the United States, with growing contributions from Europe.

A portion of the funding will be allocated to expanding its dual data centers and pursuing strategic acquisitions to further enhance its offerings.

Addressing Contemporary Workplace Challenges

Over the past year and a half, employers have navigated the challenges of a remote workforce during the COVID-19 pandemic and increasing demands for diversity, equity, and inclusion initiatives.

Culture Amp observed a marked increase in employers addressing DEI concerns within their surveys. For instance, inquiries regarding the creation of diverse teams rose by approximately 30% in 2020.

Tools for DEI and Well-being

Clients have access to surveys developed in collaboration with behavioral psychologists, specifically designed to identify potential disengagement among women, people of color, and non-native English speakers, and to provide guidance for support.

To address the pandemic’s impact, the platform introduced well-being templates to assess employee stress levels, gauge reactions to company communications, and evaluate return-to-office preferences.

Data Privacy and Actionable Insights

All surveys are completed anonymously, and data is aggregated to ensure the privacy of individual employees. To assist companies in leveraging the survey results, Culture Amp provides an “Inspiration Engine,” offering proven practices from other organizations.

Benchmarking and Skills Development

Culture Amp’s extensive dataset enables the creation of industry, size, and region-specific benchmarks. This allows companies to compare their employee engagement levels against their peers.

The Skills Coach feature, grounded in behavioral science, helps managers refine their “soft skills” through concise, interactive exercises delivered via Slack or email.

Focus on Managerial Capabilities

“Our primary goal is to elevate the employee experience, and we believe this is best achieved by empowering managers with the necessary capabilities,” Elzinga emphasized. Usage of Skills Coach has tripled in the past year, reflecting its growing popularity.

“We are still in the early stages of truly delivering on the promise of a positive employee experience,” he added. “The past two years have underscored the importance of mental well-being, diversity and inclusion, and the need for leaders to actively listen to and act upon employee feedback.”

Competitive Landscape and Differentiation

Other employee feedback platforms include Lattice, Glint, and Qualtrics. Culture Amp distinguishes itself through its team of “People Scientists,” comprising organizational and behavioral psychologists who contribute to survey design, product analysis, and client consulting.

Investing in Research and Data Analysis

“We are now at a point where we can conduct primary research on these critical issues,” Elzinga stated. “Our aim is to leverage our data to inform the broader industry, providing insights beyond our customer base and establishing correlations between various factors.”

Investor Confidence and Future Outlook

Hamish Corlett, co-founder of TDM Growth Partners, expressed confidence in Culture Amp’s potential, stating, “We have witnessed firsthand the power of Culture Amp’s unrivaled data set and unique insights within boardrooms globally, and we anticipate this influence will only grow in the coming years.”