SAN FRANCISCO — July 21, 2022 — 15Five, the company that pioneered continuous performance management, has raised $52M in funding to accelerate growth and continued innovation. Led by Quad Partners with additional funding from previous investors Next47, Origin Ventures, Edison Partners, Matrix Partners, Point Nine Capital, and New Ground Ventures, the Series C round validates 15Five’s proven approach to human-centered talent management and its mission-critical role in achieving a company’s business outcomes.
HR departments continue to grapple with the seismic shift in how, where, and why we work. The fluidity of the work environment, with remote, hybrid, and in-office options all part of the mix, is prompting the need for additional training for managers to maintain productivity. New generations in the workforce have different expectations around what work should provide; in addition to a paycheck, they want inclusive workplaces that foster a sense of belonging, more professional development, and purpose-driven employment.
The funding strengthens 15Five’s role as a foundational layer in this new world of work, enabling strategic HR leaders with innovative ways to attract, develop, and retain the best talent.
“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,” said David Hassell, CEO of 15Five. “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.”
15Five’s unique combination of subscription software, training, and coaching enables strategic HR leaders to measure engagement and performance in the flow of work, then empower their managers to drive change from the bottom up. The subscription training and coaching is delivered through 15Five’s newest product, Transform, which was launched in August 2021 and helps managers develop next-generation leadership capabilities through a blended learning model of customized coaching and an online educational offering.
15Five intentionally built every aspect of its solution to meet the needs of small- and medium-sized businesses (100 – 2,500 employees), with a focus on intuitive design, ease of use, and rapid implementation and adoption. For example, 15Five seamlessly integrates with HRIS, payroll, and other critical systems that allow HR leaders to collect and analyze data on all aspects of how their people are performing to make strategic decisions and remain agile.
15Five and lead investor Quad Partners, long active in the education arena, share the belief that employees’ professional development is elemental to the long-term health of the organization. Employee growth supports current performance goals, and also responds to the needs and desires of the next generation of employees.
“We’ve been hyper-focused on partnering with companies that play a role in helping individuals at every age become empowered, engaged, and fulfilled,” said Connor O’Keefe, Principal at Quad Partners. “Education and personal growth is a lifelong journey. 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’s last raise was a B round of $30.7 million in 2019. The company will use this new round of funding to invest in R&D to further connect the ability to measure performance (via engagement surveys, performance reviews, and OKRs) and accelerate the integration of software with coaching, so managers can impact team performance more effectively and efficiently. It will also build on the success of its rapid growth, scaling its go-to-market strategy by expanding into new markets and pursuing potential future acquisitions.
15Five customers, including Spotify, CreditKarma, Hubspot, and Pendo, benefit from a robust HR software platform built on top of intuitive management software, allowing HR leaders to grow managers’ effectiveness and bring out the best in their team members.
To learn more about 15Five’s human-centered performance management platform, please visit 15Five.com.
15Five is the holistic performance management company. 15Five equips HR teams with a complete, single-platform solution to improve manager effectiveness, drive high performance and engagement, and increase retention. By combining easy-to-use software with coaching, manager training, and a thriving professional community, 15Five’s approach provides HR leaders with everything they need to achieve their strategic people objectives. 15Five offers a full suite of products including 360 performance reviews, in-depth engagement surveys, robust goal & OKR tracking, and weekly manager-employee feedback tools like 1-on-1s and pulse ratings. Together, all of these enable HR leaders to continuously measure engagement and performance within the flow of work and then empower their managers to drive change from the bottom up. HR leaders at over 3,400 companies, including Credit Karma, Spotify and Pendo rely on 15Five’s software and services to make their talent a growth driver.
About Quad Partners
Since its founding in 2000, Quad Partners has invested exclusively in the education and workforce development industries and is one of the most active and experienced investors in the space. Quad has invested in over 40 companies, made over 60 add-on acquisitions, and built an extensive network within the industry. Quad aims to create long-term equity value by enhancing the quality metrics and mission of its businesses. They are passionate about what they do as investors and partners. Quad has managed over $1 billion and currently is investing out of its sixth fund, a $388 million vehicle.