Performance startup 15Five closes $52m Series C

COVID-19 has changed the world of work forever. It triggered a shift in some individuals’ mindsets about where they want to work.

Not only are most employees now keener than ever to work remotely (at least part of the week), but they want to work from companies that share their vision and purpose, as well as focus on career development.

If their current employer doesn’t meet their needs in these respects, then some workers are prepared to quit, sometimes without another job lined up.

In this context, it is crucial that employers provide the best workplace experience as they can. Thankfully, HR tech is on hand to support organizations attract, retain and grow their talent.

While EdTech is booming, performance management tech is also attracting significant funding. This is proved by performance-focused tech startup 15Five raising $52 million in a Series C.

The Series C comes three years after 15Five’s $30.7 million Series B, and it brings the company’s total funding to $94.1 million since its founding more than ten years ago.

The round was led by Quad Partners. Existing investors Next47, Origin Ventures, Edison Partners, Matrix Partners, and others also participated in the round.

A bright future for 15Five

15Five currently helps more than 3,400 organizations, primarily small and medium-sized, with their performance management, and it does this in the flow of work. Examples include Spotify, CreditKarma, and HubSpot.

The company’s technology integrates seamlessly with other HR systems, including payroll, so that HR teams and managers have access to all the data they need to make the right decisions around engagement and performance.

It also provides training and coaching to managers to help them support their teams even better.

The company’s CEO David Hassell explains: “One of our founding beliefs was that the best companies in the future would be the ones that figured out how to motivate their people and unlock their potential, informed by the understanding that thriving humans create thriving businesses.

“And that’s still true. But how we do that has evolved. Our tools help HR leaders implement performance reviews, engagement surveys, and alignment around goals, with a through-line to training and coaching for frontline and first-time managers.

“We believe that managers are the keystone of high performance, not just in overseeing the work, but in helping to tap into the unique strengths and passions of every member of their team.”

Talking about the funding round, Quad Partners principal Connor O’Keefe noted: “We’ve been hyper-focused on partnering with companies that play a role in helping individuals at every age become empowered, engaged, and fulfilled.

“Now more than ever, companies are expected to facilitate organizational development by engaging employees, training managers, and enabling individual and business performance.

“What was compelling to us, and led to our investment in 15Five, is its cohesive mission and vision in building solutions that truly unlock the potential of each and every employee.”

15Five plans to use this latest influx of funding to invest in research and development to continue to innovate its platform. It will also focus on more integrations, particularly in the space of coaching.

The company is headquartered in the US, but the money will also help it to explore new markets globally and consider acquisitions.

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