Mental HealthTech startup BetterUp raises $300 million at near $5 billion valuation

BetterUp made headlines back in March after the Silicon Valley-based mental health startup hired Prince Harry as its Chief Impact Officer. In his new role, The Duke of Sussex is expected to have input into product strategy decisions and charitable contributions, and advocate publicly on topics related to mental health.

BetterUp is back in the news again. Today, the company announced it has raised $300 million in late-stage funding round to fuels its international expansion and drive new product innovation. The round, which now values the company at nearly $5 billion, brings the total funding raised by BetterUp to $569.8M. The latest round closely follows BetterUp’s $125 million Series D in February 2021.

The round was led by Wellington Management, ICONIQ Growth, and Lightspeed Venture Partners, with participation from existing investors including Abu Dhabi sovereign wealth fund Mubadala Investment Company, Salesforce.com Inc’s investment arm Salesforce Ventures, Sapphire Ventures, and others.

Founded in 2013 by Alexi Robichaux and Eddie Medina, BetterUp is an employee coaching and mental wellness startup. The company provides a mobile-based leadership development platform used by Fortune 500 companies including Chevron Corp, Hilton Worldwide Holdings Inc., Snap Inc, and NASA.

BetterUp now has over 3,000 coaches on its platform and also provides analytics and real-time insights to help track employee progress. BetterUp’s other offerings include one-on-one, specialist, and on-demand coaching along with group sessions.

In a statement, BetterUp CEO Alexi Robichaux said, “We are in the midst of the great global awakening surrounding hybrid work, mental health and well-being, and diversity and inclusion. Never has the pressure been greater on our global workforce, and as we collectively redefine the workplace, it’s clear that every organization and every employee critically needs support, growth, and transformation.

Robichaux added, “From leadership and career development to mental fitness, connection, and belonging, customers are increasingly turning to BetterUp to support the most important part of their business—their people—in the most profound way possible: by focusing on their whole person growth and development, including their behaviors, skills, and mindsets. This funding will continue to accelerate our mission to bring the most comprehensive and powerful suite of tools to individuals and help them thrive in their roles, unlock their peak performance, and live with purpose and clarity.”