BetterUp is a digital coaching company that provides personalized coaching to individuals and teams. The company was founded in 2013 by Alexi Robichaux and Eduardo Medina. BetterUp is headquartered in San Francisco, California, with offices in New York City, London, and Denver.
BetterUp’s coaching platform uses artificial intelligence (AI) to match users with coaches who are a good fit for their individual needs. Coaches use a variety of methods to help users achieve their goals, including:
- One-on-one coaching: Coaches meet with users on a regular basis to discuss their goals and progress.
- Group coaching: Users can participate in group coaching sessions with other users who have similar goals.
- Micro-coaching: Users can receive short, personalized coaching messages throughout the day.
- Assessments: Users can take assessments to identify their strengths and weaknesses.
- Action plans: Coaches help users create action plans to achieve their goals.
BetterUp’s coaching platform has been used by individuals and teams from a variety of organizations, including Google, Salesforce, and Goldman Sachs. The company has raised over $400 million in funding from investors such as SoftBank Vision Fund, Thrive Capital, and General Catalyst.
A Vision for Holistic Growth: Founded in 2013, BetterUp’s journey began with a visionary understanding that people’s potential is multifaceted, extending beyond mere career success. The startup’s mission is to provide a holistic platform that fosters growth, well-being, and resilience across all aspects of life. BetterUp envisions a world where individuals can lead more fulfilling lives by optimizing their mental health, expanding their skill sets, and embracing positive transformation.
Merging Coaching with Technology: At the heart of BetterUp’s innovation lies its dynamic approach to coaching. Through a network of certified coaches, users receive personalized guidance and support tailored to their individual goals and challenges. By integrating advanced technology, the startup facilitates seamless connections between users and coaches, allowing for flexible scheduling, real-time communication, and progress tracking.
Science-Backed Positive Psychology: BetterUp’s foundation rests on positive psychology principles, which emphasize strengths, resilience, and well-being. The startup leverages evidence-based practices from this field to promote personal growth and mental wellness. By infusing these practices into coaching sessions and interactive content, BetterUp empowers users to develop a growth mindset and achieve meaningful, sustainable progress.
A Platform for Empowerment: BetterUp offers a comprehensive digital platform that combines coaching sessions, goal-setting tools, progress tracking, and a library of resources. This all-encompassing approach ensures that users have the support and tools they need to navigate challenges, set and achieve goals, and ultimately lead more fulfilling lives.
Corporate Impact and Beyond: Beyond individual growth, BetterUp partners with organizations to enhance employee engagement, productivity, and overall well-being. By providing companies with tools to support their employees’ development journeys, BetterUp contributes to creating positive workplace cultures that value holistic growth.
The Promise of Personal Transformation: As BetterUp continues to innovate and expand, it stands as a beacon of transformation in the realm of personal growth and professional development. The startup’s journey exemplifies the marriage of technology and human-centered approaches, demonstrating that the pursuit of individual betterment is not only achievable but also essential in a rapidly changing world.
Founding History and Founders of BetterUp
The origins of BetterUp are rooted in a visionary understanding that personal growth, well-being, and professional development are intertwined facets of human life. The startup’s founding history is a testament to the determination of its visionary founders and their mission to revolutionize the way individuals approach self-improvement. Let’s delve into the details of BetterUp’s founding history and the founders who shaped its transformative journey.
BetterUp was founded in 2013 by Alexi Robichaux and Eduardo Medina. Their shared passion for leveraging technology to enhance human potential and well-being fueled the startup’s inception. Both founders brought a unique blend of expertise to the table, which laid the foundation for BetterUp’s innovative approach to personal growth.
Alexi Robichaux
Alexi Robichaux, co-founder and CEO of BetterUp, brought his background in entrepreneurship, strategy consulting, and investment banking to the startup. With a degree in economics from Harvard University and an MBA from the Stanford Graduate School of Business, Robichaux combined his passion for technology with a deep commitment to positive transformation.
Eduardo Medina
Eduardo Medina, co-founder and COO of BetterUp, brought his technical prowess and passion for innovation to the startup. Medina holds a Master’s degree in Computer Science from Stanford University and has a rich background in software engineering and product development. His technical expertise was instrumental in shaping BetterUp’s technology-driven approach.
The inspiration behind BetterUp stemmed from the founders’ shared belief that every individual possesses untapped potential and an innate desire for growth. They recognized the gap between people’s aspirations and their ability to unlock their full capabilities. This realization ignited the idea of creating a platform that would provide individuals with the tools, resources, and support to achieve personal and professional transformation.
Robichaux and Medina envisioned BetterUp as a dynamic blend of coaching and technology. They recognized that while human connection and personalized guidance were crucial for growth, technology could amplify the impact of coaching and make it accessible to a wider audience. Their goal was to leverage technology to bridge the gap between people’s goals and their ability to achieve them.
The BetterUp platform was designed to offer users personalized coaching sessions, interactive content, goal-setting tools, and progress tracking. Through this comprehensive approach, the founders aimed to create an ecosystem where individuals could embark on journeys of self-discovery, well-being, and growth.
As BetterUp gained momentum, it extended its reach beyond individual users. The startup’s innovative approach to personal development attracted the attention of organizations seeking to enhance their employees’ well-being and performance. BetterUp’s corporate partnerships allowed them to extend their impact to workplaces, thereby fostering cultures of growth and positivity.
In essence, the founding history of BetterUp is a testament to the power of blending technology, coaching, and positive psychology to empower individuals on their paths to personal growth and well-being. Alexi Robichaux and Eduardo Medina’s shared vision has transformed into a platform that bridges the gap between aspirations and achievements, catalyzing positive transformation in individuals and organizations alike.
Business Model of BetterUp – How does BetterUp earn money?
At its core, BetterUp operates as a digital platform offering personalized coaching services focused on mental health and wellness. Unlike traditional therapy practices limited by geographical boundaries and scheduling restrictions, BetterUp leverages technology to connect licensed coaches with clients via secure video calls or messaging apps. This unique approach enables flexible communication options tailored to individual lifestyles and preferences.
BetterUp charges clients based on two main models: monthly subscription fees or per session rates. Monthly subscriptions typically range between $89-$249 depending on the number of sessions included and duration of service. Clients opting for per session billing pay $79 per hour-long session without any long-term contractual obligations. Both pricing structures ensure flexibility and affordability for diverse clientele ranging from entry-level employees to executives and entrepreneurs.
A key component of BetterUp’s business model revolves around building strong relationships with corporate partnerships for its new product BetterUp Care™ specially designed for enterprise clients. Companies recognize the importance of employee wellbeing and are willing to invest in comprehensive mental health solutions for their teams. BetterUp capitalizes on this opportunity by collaborating with HR departments to offer customized group packages tailored to specific organizational needs. Such partnerships benefit all parties involved by fostering a positive work culture grounded in emotional support and professional development.
Additionally, BetterUp supplements its income stream through various integrations with complementary third-party applications such as wearable devices tracking sleep patterns, mindfulness meditation apps, and productivity software. These cross-platform collaborations enhance the overall value proposition for clients by seamlessly incorporating relevant tools and resources directly within the BetterUp ecosystem.
Finally, BetterUp remains committed to continuous research and development of novel approaches addressing common mental health challenges faced by contemporary society. Regularly updating its coaching methodologies and exploring cutting-edge technologies allows BetterUp to maintain its competitive edge in the rapidly evolving landscape of mental healthcare delivery.
In summary, BetterUp’s business model effectively blends advanced technology, strategic partnerships, diversified revenue sources, and a passionate focus on enhancing human lives.
Number of Users
The startup grew its entire customer base by 80 percent, recorded a net revenue retention rate of over 170%, and reached $100M in annual recurring revenue in July of 2021.
BetterUp has also grown its coaching network to over 3,000 coaches, expanded the number of behavioral scientists by 50 percent, doubled corporate employee headcount to over 500, and today serves more than 380 enterprise businesses including Hilton, Salesforce, bp, NASA, Chevron, and Snap Inc.
Funding, Valuation and Investors
BetterUp is a reputed startup with a wide array of Venture Capital firms invested in the company such as Wellington Management, ICONIQ Growth, Lightspeed Venture Partners, Threshold Ventures, Plus Capital, Salesforce Ventures, Sapphire Ventures, Mubadala Capital, Freestyle Capital, Crosslink Capital, and Tenaya Capital.
In 2021, BetterUp clinched $300 million in a series E fundraise to accelerate its international growth and drive new product innovation with the funding round bringing its valuation to $4.7 billion.
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