Now that the holidays are over, many companies are about to make their employees go through the most dreadful exercise of the year: the annual performance review. Reflektive aims to replace the typically painful review process with a far more lightweight and less demotivating real-time feedback system that integrates into an employee’s daily workflow. In 2015, the company raised a $3.6 million seed round led by Andreessen Horowitz, followed by a $13 million Series A round in 2016 led by Lightspeed Venture Partners.
Today, the company announced that it has raised an additional $25 million in a Series B round that was once again led by Lightspeed. Andreessen Horowitz also participated in this round.
Reflektive’s current customers include companies like Twilio, Braintree, Thumbtack, CreditKarma, Digital Ocean, Udacity, and Nutanix. In total, Reflektive now has about 200 customers, up from 70 compared to a year ago. This kind of growth, as well as the fact that it is tackling a problem that virtually anybody who has ever worked for a large company can relate to, is clearly attractive to investors.
Reflektive CEO and founder Rajeev Behera notes in today’s announcement that the company had a lot of interest in this round but decided to go with an inside round led by Lightspeed’s Nakul Mandan.
“In the age of LinkedIn and Glassdoor, business leaders can’t afford to have disengaged employees and can’t impose HR processes that are more administrative in nature vs. genuinely focused on talent development,” Mandan said in a statement. “The team at Reflektive has built a beautiful solution that helps managers and employees provide each other real-time feedback, help in each other’s development and stay connected with the company’s mission. Reflektive’s fast growth and the marquee customer list speaks to how well their solution is resonating with business leaders.”
Unsurprisingly, there are a few other companies that are also vying for this market. These include the likes of BetterWorks, ZingHR, Synergita and plenty of others, though they all tend to have slightly different features and emphasize different parts of the employee review and retention process.
Behera says that the new funding will now allow his company to expand to new products that will focus on continuous employee feedback and communication, as well as real-time personalized employee engagement.