BetterUp employee wellness startup valued at $1.73 billion

Employee wellness startup BetterUp has raised $125 million at a $1.73 billion valuation.

The business works with clients such as NASA and Snap to help employees with a network of performance coaches, mentors and mental health counseling. BetterUp also has offerings to help companies improve their diversity and inclusion efforts.

For mental health, San Francisco-based BetterUp is part of a large category which includes an array of startups from Modern Health to Lyra Therapeutics.

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Emily Melton, a managing partner at Threshold, said that there’s room for several multibillion-dollar businesses in the space. People are increasingly recognizing the importance of mental health fitness, “the same way exercise makes you feel better,” she said.

With the funding round, BetterUp has now raised $300 million. The capital will partly be used to expand further internationally, said Doug Pepper, general partner at Iconiq.

Common uses for BetterUp’s services involve first-time managers or new parents, said Chief Executive Officer Alexi Robichaux. During the coronavirus pandemic, reducing stress and anxiety has been a focus, he said.

Robichaux said the company is aiming for an initial public offering, though he wouldn’t comment on timing.

“We built BetterUp from day one with the intention of being an independent company,” he said.