Executive Coaching: Navigating Emotions & Challenges

Startups Weekly: A New Approach to Employee Development

This week’s edition of Startups Weekly delivers a human-centered perspective on the latest startup news and trends. Subscribe here to receive future updates directly in your inbox.

BetterUp Expands with Strategic Acquisitions

BetterUp, a platform dedicated to employee reskilling and coaching at all levels, is focusing on emotional intelligence. The company recently announced the acquisition of two firms specializing in emotional AI and people management: Motive and Impraise. Financial details of these transactions were not revealed.

The announcements followed a period of significant growth for BetterUp, including surpassing $100 million in annual recurring revenue, expansion into the European market, and reaching one million individual coaching sessions facilitated through its platform.

A Shift in the Coaching Industry

It’s common for growing startups to utilize acquisitions to accelerate expansion and justify their valuation. However, BetterUp’s recent moves are noteworthy as they indicate a potentially new direction for the coaching sector.

BetterUp initially distinguished itself by extending coaching services beyond C-suite executives to encompass all employees. These acquisitions represent a further evolution of their approach to coaching delivery and implementation.

Leveraging Emotional Data and Real-Time Feedback

Motive will enable BetterUp’s clients to gain deeper insights into the emotional context of existing data, such as engagement surveys and polls. This provides a readily actionable understanding of employee sentiment, offering a faster response than relying solely on the longer-term benefits of coaching.

Conversely, Impraise utilizes technology to empower managers in supporting their teams through continuous performance reviews and streamlined feedback processes. This represents a departure from conventional coaching methodologies.

The Importance of the Direct-Report Relationship

“The relationship between a direct report and their manager is where real change occurs in individuals’ professional lives,” stated Alexi Robichaux, CEO and co-founder of BetterUp. “Actual transformation doesn’t happen during coaching sessions, but rather in the time following them.”

An End-to-End Solution for Employee Growth

These acquisitions suggest BetterUp recognizes that effective coaching for all employees requires a comprehensive solution. This necessitates involvement from all levels of the organization – from HR departments to individual managers – and cannot be limited to scheduled coaching appointments.

While this increased investment may deter some employers from offering such services, the pressure to retain talent may ultimately drive adoption. This development also raises the standards for other coaching and upskilling platforms.

Beyond Point Solutions

“Coaching can function as a standalone solution, but that’s insufficient, and we understand this better than anyone, having originally pioneered that approach,” Robichaux explained. “Without a robust data platform, measurable outcomes, and AI-driven personalization, coaching even 50 managers within a company won’t impact every employee.”

Further Insights This Week

This newsletter also covers Atlanta’s growing bootstrapped startup scene, the challenges faced by Casper, and recent developments at Apple. Connect with me on Twitter @nmasc_ and tune into my podcast, Equity, for more analysis.

Atlanta's Significant Independent Success

The spotlight is now on Atlanta, challenging the prominence of cities like Austin and Miami. This week, the acquisition of local firm Mailchimp by Intuit for an impressive $12 billion captured widespread attention. Notably, the Atlanta-based email marketing company achieved this without accepting any external investment, making it one of the largest exits for a bootstrapped company in history.

While many view Mailchimp’s substantial exit as a positive development for Atlanta’s startup community and venture capital landscape, differing perspectives have emerged.

Key takeaways: A unique aspect of Mailchimp’s operational approach as a non-conventional tech company involved foregoing employee equity. Instead, the focus was placed on profit-sharing and competitive salaries.

This strategy, however, has come under scrutiny following the $12 billion acquisition, as employees discovered they lacked ownership stake in the company they contributed to building. This situation raises questions about the merits of bootstrapping, a topic recently discussed on Equity.

Employees shared their initial responses with Business Insider, reflecting on whether the deal truly strengthens the local entrepreneurial environment.

Beyond the email:

• Atlanta’s diverse startups are participating in the global surge in venture capital funding.
• Collab Capital has successfully closed its inaugural $50 million fund, dedicated to supporting Black founders.

Casper Faces Further Challenges

Recent findings reveal that Casper, the mattress company known for its direct-to-consumer model, has implemented a new series of workforce reductions. This latest action affected approximately twenty-four employees, alongside the departure of its Chief Marketing Officer, Chief Technology Officer, and Chief Operating Officer.

These layoffs and leadership changes occur just over a year following a previous workforce reduction of 21% and the closure of Casper’s European business segment.

A superficial assessment might suggest Casper is experiencing difficulties with leadership and strategic planning, remaining reactive since its initial public offering. However, a more detailed examination suggests a more complex situation.

Understanding the Context: A source within the direct-to-consumer industry, requesting anonymity due to a lack of direct involvement with Casper, posited that these layoffs could be linked to Apple’s iOS 14.5 update. This update introduces stricter regulations regarding user data tracking by applications.

The new setting limits the advertising data available to companies, complicating budget allocation and the evaluation of sales performance.

For direct-to-consumer businesses, the combined challenges of unpredictable in-store retail conditions and difficulties in attributing advertising effectiveness present a significant obstacle.

Key Takeaways:

• Facebook is adjusting its suite of business tools in response to potential disruptions to its advertising targeting capabilities.
• DTC companies are navigating a landscape of choices and limitations as they determine their optimal strategic path.
• Data continues to be a crucial component of effective marketing strategies.

The ability to accurately measure marketing return on investment is becoming increasingly difficult in the current digital environment.

Casper’s situation highlights the broader pressures facing DTC brands as they adapt to evolving privacy regulations and a changing retail landscape.

Apple's Latest Announcements

Apple recently hosted another virtual event, presenting a range of updates, enhancements, and entirely new product introductions. The TechCrunch team provided comprehensive live coverage of the proceedings.

Detailed reports and analysis from the event can be found in our complete coverage here.

Key Highlights from the Event

The primary focus of the presentation was the unveiling of the new iPhone 13. Brian Heater provided background information surrounding the launch and detailed the significant innovations incorporated into the smartphone.

Further developments and announcements included:

• A critical security patch was released by Apple to address a zero-day vulnerability exploited by NSO Group, impacting all Apple devices.
• The iPhone 13 Pro camera received substantial upgrades, including macro photography capabilities, improved low-light performance, and cinema-style video recording features.
• The iPhone 13 Pro and Pro Max models boast a ProMotion display with a 120Hz refresh rate, alongside advancements in camera technology.
• The Apple Watch Series 7 was introduced, featuring a larger and more durable display.

These updates demonstrate Apple’s continued commitment to innovation across its product lines.

The company continues to refine its existing offerings while introducing new features designed to enhance the user experience.

TechCrunch Disrupt: An Upcoming Event

Preparations are now complete, and the companies participating in the Battlefield competition are enthusiastic. A photo booth will also be available for attendees.

TechCrunch Disrupt, our premier event, is scheduled to begin next week! This year’s conference, which will be held virtually from September 21st to 23rd, will feature prominent speakers such as Melanie Perkins and Reid Hoffman.

The events team has dedicated considerable effort to crafting a virtual experience that is both captivating and reflective of our publication’s unique character. Having had a preview this week, I can confidently state that it distinguishes itself from other online conferences experienced throughout the pandemic.

I am eager to take the virtual stage alongside my team members, conduct interviews with leading figures in the technology sector, and connect with as many entrepreneurs as possible. Will you be attending? Tickets can be purchased utilizing the discount code “MASCARENHAS20.”

Event Highlights

• Dates: September 21-23
• Format: Virtual
• Speakers: Melanie Perkins, Reid Hoffman, and others
• Key Feature: Battlefield competition

The focus will be on fostering an engaging and dynamic environment, despite the virtual setting. This event promises a unique experience for all participants.

Weekly Highlights

Featured in TechCrunch

Evidence suggests Facebook is aware of the negative impact Instagram has on adolescent mental health. Consequently, plans to launch a version of the app specifically for children are now facing increased scrutiny.

An analysis of Reach Capital’s investment portfolio reveals strong returns driven by their focus on educational technology companies.

Concerns are being raised regarding Canva’s handling of PDF functionality and its potential implications for the company’s $40 billion valuation.

Highlighted on Extra Crunch

Implementing new Human Resources technology can be streamlined for hiring managers through the adoption of three key strategies.

Several factors are being considered that could potentially hinder the current surge in startup activity.

The upward trend in the value of software revenue may be reaching a plateau, according to recent data.

Educational technology companies are increasingly embracing the creator economy model, offering cohort-based learning experiences.