Founded in 2013 by two former Google employees, BetterUp is an online community where people share their experiences and learn from each other. It has the mission to empower individuals to reach their full potential.
But how does Betterup make money? Are you curious about their financials? If so, this article is exactly what you’re looking for. In this post, we’ll dig into their finances and learn about the different methods they use to generate revenue.
BetterUp is a growing company that offers corporate training for companies looking to improve employee productivity. This allows them to drive new levels of employee satisfaction and performance.
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About BetterUp
BetterUp is an online platform that helps companies provide executive coaches for their employees.
It enables people to connect with licensed therapists and career counselors for focused guidance, support, and therapy sessions.
BetterUp makes an otherwise typically exclusive coaching program available to employees at all career stages.
BetterUp charges a monthly subscription for companies to access its coaching service. By using BetterUp’s platform, companies can empower their staff, increase productivity and decrease employee burnout.
The company offers its professional and research-based consulting services to over 100,000 clients.
Business Model of BetterUp
BetterUp applies six key values to its business: COURAGE, CRAFTMANSHIP, EMPATHY, ZEST, PLAYFULNESS, and GRIT.
These numbers act as reminders for the company to stay focused on its purpose and aligning itself with these core beliefs has been an important factor in its success.
Recognizing that the overall well-being of an organization’s employees is vital to its success, CEO and co-founder of Wellth Inc., Alexi Robichaux, realized that encouraging health and wellness at the office not only benefited employees but employers as well.
Recognizing the increasing prevalence of mental illness among employees, BetterUp looked into the issue. They found that people who feel lonely at work tend to be less productive and more prone to stress. These findings led them to develop their own solution.
As companies invest huge sums of money into technology designed to boost employee efficiency, their employees’ stress levels are rising too.
The company found that people who worked in lower positions were less satisfied than their bosses. So they decided to provide better benefits to everyone, including the low-level workers.
Coaching
BetterUp offers professional coaching for employees at all levels via live online sessions, texts, or emails. It’s easy to access because they offer both audio and visual options.
By matching users to coaches using advanced technology, like artificial intelligence and scientific and behavioral research, BetterUp changed the traditional method of matching people to coaches.
BetterUp believes that the workplace isn’t just there for people to get paid; it’s supposed to be a place where people grow. It’s not just a job, but a way to develop yourself.
With this in mind, the company has set out to grow both personally and professionally using artificial intelligence (AI), behavioral science, and human interaction. They credit themselves as the world’s largest personal development network.
Resources
BetterUp provides valuable services on its own app and on its website.
They offer content that helps companies improve their employees’ experiences at work. Topics cover leadership and management, culture, and more.
They also provide case studies to show how they’ve used their data to improve business outcomes.
Furthermore, users have full control over the entire experience, including the ability to use additional tools and services. Those who utilize these features in addition to their coaching program can expect greater success than others.
BetterUp Labs
The startup believes in overall well-being, which includes both physical and mental health, underscoring the saying that “innovations start with empathy.” It has raised $20 million for its behavioral research.
BetterUp Labs conducts behavior research that helps people understand that their lives aren’t always balanced. They recognize that balance isn’t simply having enough free weekends to hang out with friends; instead, they use their research to help them develop better habits for personal improvement that translate into professional success.
To help people become happier, the company pledged to improve its service by making it more accessible and less expensive. Instead of just making it easier for people to get access to services, BetterUp aimed to actually change lives through its service.
With notable companies such as Google, Lyft, and Hilton among others using their service, BetterUp is showing strong signs of growth.
They have no plans for slowing down and announced the upcoming release of Better Up Care, a wellness platform focused on mental health.
How Does BetterUp Make Money?
Platform Subscription Fees
BetterUp makes money by charging companies for its services. It also charges individual clients for its services. By using artificial intelligence, BetterUp offers executive coaches at a lower price than traditional executive coaches.
With BetterUp leading the way as the worlds biggest coach networking platform, there is no doubt they are making a lot of cash.
At the beginning of 2019, the company announced a monthly subscription fee of $499 for companies. Potential subscribers can contact a sales rep to learn more about the pricing structure.
By making employees invest in their own personal development, companies can help them avoid burnout and increase productivity.
Employers who invest time and resources into BetterUp report a 24% decrease in employee burnout and a 19% decrease in employee turnover.
This is a huge attraction for businesses looking to grow their bottom line. It’s also the main reason why BetterUp has seen triple-digit growth in 2018 for the 2nd straight year. 70% of clients describe their coaching experience with them as “amazing” and “lifesaving”.
BetterUp has received praise from some well-known people and organizations. Earlier this year, Prince Harry became the company’s chief impact officer. He called the company “invaluable.”
They’ve been praised by many Fortune 1000 clients including Instacart and Airbnb, among others.
Equinix, an IT services provider, shares its own experience using the BetterUp platform for employee wellness. It reported a 24% reduction in employees who experienced stress and a 15% reduction in burnout rates. These numbers are even higher than the industry averages.
They don’t just help people become healthier; they help them stay healthy. Employers report that their employees’ productivity has increased by 20% since implementing the program.
BetterUp Funding, Valuation, and Revenue
With its first fundraising in 2016, BetterUp Inc. has been steadily growing since then. It received $26 million in Series B financing from Accel Partners in 2017, which was almost fourfold compared to the $7 million it had previously received.
Within just one year, Better Up grew its annual revenues by more than twice. It also achieved an impressive net income retention rate of more than 140 percent. Furthermore, the firm has achieved annual revenues of approximately $229 million.
BetterUp, an online education platform for students ages 13–18, announced that they had recently closed a $125 million Series D financing round. The new round valued the startup at $1.7 billion.
Investors helped the company earn an approximate total of $267.8 million since 2016. With this funding, the company aims to help develop its new product, BetterUp Care.
BetterUp Care will offer a more comprehensive wellness program than traditional health plans. It will focus on true recovery from the inner workings of the body.
Is BetterUp Profitable?
BetterUp, the leader in leadership education and training, has a profitable business plan and expects continued strong growth in sales.
BetterUp has created an effective way for corporations to provide their employees with personalized training programs through its interactive videos.
BetterUp has earned an excellent reputation for its commitment to providing health and wellness benefits to all employees. Its holistic approach has put a greater burden on employers to provide these benefits to their employees.
As the largest online coaching platform, the company has been expanding for years and continues to do that.
Conclusion: How Does BetterUp Make Money?
BetterUp is a leading enterprise mobility solutions company that helps organizations develop better leaders through its best-in-class leadership development software. It has been adopted by many large corporations including Anheuser Busch, Google, Salesforce, and more.
However, investing in leadership training is not just a luxury for small businesses; it can actually pay off big dividends.
Like any type of business investment, leadership development should be evaluated in terms of its Return On Investment (ROI). BetterUp aims to provide companies with an effective and engaging way to promote leadership development.
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