Sounding Board Secures Series B Funding for SaaS Coaching Platform

The Evolution of Leadership Development: Sounding Board's Series B Funding

Initially conceived as a marketplace connecting leaders with coaches, Sounding Board recognized a crucial shift in mentorship requirements as the pandemic altered traditional work environments.

From Services to Software

“Our initial approach centered on delivering coaching through a conventional service model,” explained Christine Tao, CEO and co-founder of Sounding Board. “However, with the widespread move away from the office, it became apparent that we needed to redefine how we discuss and implement talent and leadership development.” This realization spurred the creation of a software platform designed to facilitate connections with coaches and enable ongoing goal tracking.

Approximately one year following a Series A funding round supporting this vision, Sounding Board has successfully secured $30 million in Series B funding.

Investment Details and Board Expansion

The funding round was spearheaded by Jazz Venture Partners, with participation from Gaingels and a group of angel investors. These investors include Sukhinder Singh Cassidy of theBoardlist, Deb Liu from Ancestry.com, Yvonne Chen of Udemy, and Tammy Aguillon of DocuSign. Existing investors, Canaan Partner and Precursor Ventures, also contributed to this round.

Notably, John Spinale from JAZZ Venture Partners has joined Sounding Board’s board of directors. This addition marks a humorous turning point for the company, as Tao remarked, “We actually had to add diversity to our board… a man!” The company’s leadership and board remain entirely female.

Growth and Retention Metrics

Sounding Board has demonstrated consistent sequential growth over the past seven quarters. While specific revenue figures remain undisclosed, the company reports revenues in the “multimillions” and a year-over-year increase in annual bookings exceeding 350%.

Furthermore, the platform boasts a net revenue retention rate of over 200%, indicating that existing clients are continually renewing and expanding their use of the service.

Competitive Landscape and Strategic Focus

The shift towards software-driven coaching is also evident in the actions of competitors like BetterUp, which has recently engaged in a series of acquisitions. BetterUp acquired Motive to enhance emotional context analysis and Impraise to improve manager-employee feedback processes.

Tao believes BetterUp’s expansion has underscored the importance of executive training to investors. However, she maintains that Sounding Board is uniquely positioned to address the need for specialized leadership development, rather than offering a generalized coaching solution.

Capability Building vs. Mental Wellness

Over the past year, Tao has observed a growing number of solutions focused on supporting individual well-being and emotional health. “Alongside that, however, there’s a critical need for the development of concrete skills and the ability to effectively communicate and manage,” she stated.

Sounding Board is prioritizing the enhancement of these capabilities and currently has no plans to expand into the mental health domain. While a competitor offering both aspects could potentially gain market share, Sounding Board’s current customer base appears satisfied with its focused approach.

A Distinct Value Proposition

Tao differentiates capability-building from employee benefits, stating, “Mental health benefits are often opt-in, providing support when needed. Capability development, however, represents a direct business investment and a recognized organizational responsibility.”