WorkBoard Secures $75 Million in Series D Funding

WorkBoard, a company specializing in objective-setting software, has announced the successful completion of a $75 million Series D funding round. Softbank Group spearheaded the investment, with significant contributions from existing investors.

Investor Participation

The funding round attracted participation from prominent venture capital firms. These include Microsoft’s M12, a16z, GGV, and Workday Ventures. Additionally, three new investors joined the round: SVB Capital, Capital OneVentures, and Intel Capital.

A diverse group of strategic and venture investors collaborated with SoftBank to substantially increase WorkBoard’s capital reserves through this single investment.

Funding History and Valuation

Prior to this latest round, WorkBoard had already secured $65 million in funding, as stated by co-founder and CEO Deidre Paknad. Consequently, this new investment surpasses the total amount raised in all previous funding rounds combined.

The company is now valued at $800 million post-money. This represents a considerable increase from its Series C post-money valuation of $230 million, according to data from PitchBook.

Strategic Use of Funds

Despite not requiring additional capital for ongoing operations, WorkBoard intends to aggressively invest its newfound resources. Paknad revealed the company held $35 million in reserves from prior rounds, resulting in a current bank account balance of approximately $100 to $105 million.

The company experienced substantial growth, increasing by 90% from Q1 2020 to Q1 2021, and anticipates exceeding a doubling of revenue this year.

Economic Inflection Points

Paknad explained that the decision to raise capital now stems from the belief that both the economy and the market are at pivotal moments. These conditions present an opportune time for strategic capital deployment.

WorkBoard is already actively expanding its team, having added 82 employees in the first 100 days of the year. The company plans to grow its workforce from 250 to 400 employees throughout the year.

Market Opportunities

The company is capitalizing on a rapidly expanding economy, with the Federal Reserve projecting a 6.5% growth rate for the U.S. economy this year. This robust economic climate is conducive to accelerated growth for software companies.

Furthermore, there's a growing demand for more frequent planning cycles. As OKRs (Objectives and Key Results) are typically reviewed quarterly, they offer a faster-paced alternative to traditional annual planning processes.

International Expansion and Community Investment

WorkBoard also aims to broaden its international presence, focusing on markets in Asia and Europe. The company is committed to investing further in these regions.

Continued investment in community initiatives is also a priority, mirroring a trend observed among other rapidly growing startups.

Investor Interest and Services Offering

Paknad noted significant investor interest, with numerous firms actively seeking to invest in WorkBoard. The company also provides coaching, certification, and other services, which account for approximately 10% of its total revenue.

These services are considered crucial for attracting and supporting customers who require assistance with implementation and optimization.

Product Development and Growth Trajectory

The services team maintains a direct feedback loop with the product development team. This ensures that customer insights are rapidly incorporated into product improvements and new features.

WorkBoard has demonstrated consistent high growth rates, achieving 350% growth in 2018, 300% in 2019, and around 100% in 2020. The company projects another doubling of revenue in 2021, bringing it closer to the venture-ready milestone of $100 million in recurring revenue.

Future Outlook

Further analysis of the OKR software market, including companies like Ally.io, Perdoo, Gtmhub, Koan, and WeekDone, is planned for the coming months to assess Q2 2021 performance.