onloop Raises $5.5M to Revolutionize Performance Reviews

Reimagining Performance Management with OnLoop

Traditional performance reviews often consume significant managerial time and are frequently viewed as a challenging aspect of professional life. OnLoop seeks to transform this experience, introducing a more streamlined and enjoyable process through continuous, behind-the-scenes information gathering, particularly beneficial for hybrid workforces.

Continuous Feedback and Automated Reviews

This Singapore-based company has developed a mobile-first platform designed to consistently collect employee feedback and track progress toward established goals. This ongoing data collection provides organizations with enhanced insights into both individual and team performance.

The gathered feedback is intelligently processed and automatically converted into comprehensive review drafts. These drafts present managers with all collected information, enabling them to efficiently finalize performance evaluations.

Recent Funding and Key Investors

Following a successful private beta period initiated in January 2021, involving 25 companies, OnLoop secured $5.5 million in funding. This round was co-led by MassMutual Ventures and Square Peg Capital, with participation from Hustle Fund and a diverse group of angel investors.

Notable angel investors include XA Network, Aliza Knox of BCG, Andrew Macdonald from Uber, Allen Penn of Ready, Bambos Kaisharis of Google, Brooks Entwistle of Ripple, Robert Hoyt, Eddie Lee of Nordstar, Alex Dwek of Nas Academy, and hedge fund managers John Candeto and Keshav Lall.

Addressing a Persistent Challenge

Projjal Ghatak, co-founder and CEO of OnLoop, draws upon his experience of over three years at Uber. He observed a proliferation of productivity tools, yet consistently encountered difficulties in effectively developing his team due to varying work styles and communication preferences.

“A recurring issue voiced by companies is the lack of a suitable tool for team development,” Ghatak explained.

A Mobile-Native Solution

Recognizing his increasing reliance on mobile devices, Ghatak prioritized a mobile-native design for his product. This approach aims to eliminate the need for managers to begin performance reviews from scratch each cycle.

Instead of dedicating days to information gathering, OnLoop automatically captures data and transforms it into a well-structured summary, as its name suggests.

The Benefits of Continuous Feedback

The continuous flow of information fostered by OnLoop is believed to positively impact employee morale. Data indicates that regular self-reflection and feedback can boost productivity by as much as 20%.

Furthermore, a Gallup study revealed that only 14% of employees feel inspired to improve by their performance reviews.

“Company culture is largely shaped by leadership, and we provide the tool to effectively drive that culture,” Ghatak stated. “Our focus is on educating teams on best practices, emphasizing fun and convenience. Helping colleagues gain new perspectives can significantly enhance impact.”

Future Investments and Growth

The newly acquired funding will be primarily allocated to product development and research & development, specifically expanding the product, data, and engineering teams. The company will also refine its sales and marketing strategies.

Currently, OnLoop employs 22 individuals and is transitioning from converting early adopters into paying customers to establishing a scalable approach for broader product distribution.

Insights from Square Peg Capital

Piruze Sabuncu, a partner at Square Peg Capital, personally experienced the challenges of performance reviews while working with Stripe in Southeast Asia and Hong Kong.

She highlighted the complexities of managing regional teams where an employee’s direct manager might be geographically distant, yet collaborate closely with a local manager.

Square Peg Capital utilizes OnLoop internally, and Sabuncu appreciates its mobile-first design and user-friendly interface, noting that it doesn’t evoke the dread often associated with performance reviews.

“The identity of a manager shouldn’t be a limiting factor,” she added. “The responsibility of supporting and developing an employee remains, regardless of reporting structure. The rise of remote and hybrid work is undeniable, presenting a substantial $400 billion market opportunity. OnLoop offers improved communication and feedback mechanisms.”

Note: The funding amount and lead investors were updated after the initial announcement due to a correction.