Workstream Inc. recently closed on its Series B round of funding for $30 million. This brings their total funding to date to over $40 million. Workstream, who offers a modern workplace engagement platform designed to help reduce job churn and increase overall productivity, is quickly gaining notoriety in the space.
Investors have increasingly taken an interest in Workstream due to its innovative approach which blends an intuitive user experience with cutting-edge data science techniques to develop powerful analytics and insights capabilities that can be harnessed by businesses of any size or industry. As a result, investors are hailing the company as a “game changer” in the space and calling it “the future of managing people”.
In this article we analyze what investors are saying about Workstream’s Series B closing and it’s potential impact on the industry going forward. We deeply dive into investor sentiment, forecasts for market potential, and what could be expected from Workstream post-Series B regarding product development and customer growth.
Overview of Workstream
Workstream is looking to revolutionize the hiring process for businesses with its automated platform. Recently, it has completed its Series B fundraise and raised an impressive sum of $48M. The response to this fundraise has been overwhelmingly positive, and investors have shown great confidence in the company.
Let’s look at the details of this fundraise and how it will affect the company.
What is Workstream?
Workstream is a leading provider of employee experience and operational efficiency solutions designed to make business operations more efficient. With Workstream’s cloud-based platform, teams can manage the administrative tasks of their day-to-day operations while streamlining the customer experience and enhancing customer satisfaction.
Workstream’s solutions are designed to simplify and automate labour-intensive processes such as time & attendance tracking, scheduling, safety compliance, performance management, recruiting & onboarding and employee communications. This helps reduce manual work for businesses so they can focus on improving their bottom line or devote more resources to other business objectives.
The company was founded in 2017 and has since raised three rounds of funding from investors including Y Combinator, Moment Ventures and GGV Capital. As part of its Series B fundraising round in October 2020, the company raised $30 million from investors including Uncork Capital, Samsung NEXT and Menlo Ventures. After surpassing its $25 million target for the Series B round, it resulted in a post-money valuation of approximately $350 million for Workstream.
What services does Workstream offer?
Workstream, a Los Angeles-based technology company, offers a comprehensive suite of human resource services designed to enable businesses to manage and optimize their workforce. Founded in 2013, Workstream has rapidly grown into one of the leading providers of Human Resource Management tools. Their powerful, proprietary technology platform is used by over 5,000 customers in 26 countries to hire, onboard, track training progress and performance, manage payroll and much more.
Workstream’s services can be customized for companies based on size and industry needs. Their cloud-based platform is user-friendly and integrated with popular customer relationship management software such as Salesforce and Microsoft Dynamics. A robust mobile application allows employees to access their accounts securely from any device anytime anywhere.
Workstream not only simplifies human resource processes but also provides real-time analytics on employee performance. Additionally it provides advanced data security protocols that protect company data and customer confidential records from malicious cyber threats or unauthorized access. This makes Workstream an attractive solution for businesses of all sizes looking to streamline their HR tasks without compromising security or customer privacy.
Workstream’s Series B
Workstream’s Series B round signifies the commitment of investors towards their product. The round has raised $48 million, a huge step for the company. This shows that the investors believe in the potential of the product, and are willing to take a risk.
Let’s look closely at what investors say about Workstream’s Series B.
Overview of the Series B
Workstream’s Series B funding round has seen notable investors such as British venture capital firm Atomico, Japanese giant SoftBank, and Chinese tech giant Tencent invest in the company. This marks the first large scale investment from a Chinese company in Workstream.
According to the companies, this series B will bring in an additional $150 million for the platform. This investment will be used for providing new products and services to its users, expanding their engineering and sales teams, and scaling up its customer service.
This news reflects positively on Workstream’s ability as a business platform as more investors are willing to put their trust in the it. In addition, this round of funding further solidifies Workstream’s presence among top recruitment platforms. It cements its reputation as one of Silicon Valley’s major successes since its launch five years ago.
As with any large scale investment round, there is always some scrutiny due to it being open to speculation by those interested in investing. However, if the various customer reviews and ratings of Workstream’s platform are any indication then this Series B looks like a surefire success for the company.
How much capital was raised?
Workstream’s Series B fundraising round brought in $17 million, surpassing its initial target of $15 million. The round was led by Susa Ventures, with participation from Founders Fund, Morado Venture Partners, BBG Ventures and Shrug Capital.
The majority of the funding is being used to further develop Workstream’s virtual interview platform with a focus on product innovation, customer success and marketing growth. The additional capital will help the company continue its mission of making recruiting more accessible and fairer for all job seekers.
With its new funds, Workstream will expand operations both domestically and internationally to reach even more people that were previously unable to access quality job opportunities due to location or lack of resources. With this new capital injection, the company seeks to become an even more integral part of the modern recruitment process with innovative technology that benefits everyone involved.
What are the plans for the capital?
The proceeds from Workstream’s Series B round of funding will be used for further product development, expansion of its customer base, and new market opportunities. Additionally, the company plans to invest in its sales force to continue executing its sales strategies by focusing on customer acquisition, onboarding excellence and marketing effectiveness.
The investment will also facilitate the growth of partnerships worldwide and enable increased focus on research and development within product engineering. This includes developing best-in-class customer experience enhancements that expand the company’s ability to serve small businesses in different markets worldwide.
It is important to note that with this investment round comes a greater need for financial responsibility such as sustained profitability, control of spending relative to budgeted targets as well as creating an overall vision that aligns all resources to drive strong customer engagement and retain customer loyalty so that Workstream can capitalize long term from their investments into effective growth strategies.
Investor Reactions
The news of Workstream raising $48M Series B funding to help businesses hire has created a lot of buzz in the investors’ circle. Many investors have expressed their confidence about the venture and have expressed their positive outlook on the future of the company. It is clear that investors view Workstream as a promising business venture and are looking forward to seeing it reach its potential.
Let’s look into the details of the investor conversations.
What are investors saying about the Series B?
As Workstream has just completed their Series B round of financing, investors are offering mix reviews on the outcome. The hundreds of millions garnered in this round shows the desire to acquire a stake in the company.
Positive reactions focus on Workstream’s product potential and potential to grow revenues, while some skeptics remain unconvinced that such a large amount was necessary. Many note that the valuation given is far greater than what other similar companies have obtained, raising questions as to whether it will pay off for investors down the line.
Investors have also commented on Workstream’s ability and vision for using smart money to build its team, partner with companies for mutual partnership, and create new solutions for their customers. They also laud the stability of their business model given its focus on digital services as opposed to physical assets even during these unstable economic times.
On average there seems to be enthusiasm with regards to Workstream’s Series B round of financing but also an acknowledgement that it will require a great deal of hard work going forward for it to pay off for those who choose to place money into what is now one of the fastest-growing software organizations.
How has the investment impacted Workstream’s valuation?
Investor reactions to Workstream’s Series B round of funding were mixed, but generally positive. Workstream has raised $25 million to help ramp up their sales, marketing, and R&D efforts. The new investments have also helped them attain a $100 million post-money valuation.
Workstream is currently the leading provider of workplace collaboration analytics. Their product helps employers identify and eliminate silos in their organization and improve business productivity. With their new influx of funding, they plan to expand into more industries, such as healthcare and financial services.
The investment delivery in their Series B round was led by NEA (New Enterprise Associates) alongside major investors such as Insight Venture Partners and 8VC. Due to the funds raised, NEA’s Hugo Van Vuuren has joined the board of directors at Workstream. This move has sparked excitement in the market thanks to his years of experience scaling technology startups including Dropbox, Splunk, and Disney+.
Overall this latest injection of capital is viewed as an indicator that investments into the workplace automation sector are on an upward trajectory – especially if these large investors are willing to back companies in this space with such confidence. As companies compete for market share (especially those who continue to survive disruption during Covid-19), investments like this could be further motivation for businesses seeking more efficient ways of driving employee engagement through collaboration tools that provide visibility into how people are interacting within their organisations. While it remains uncertain how this investment will affect Workstream’s valuation in terms of revenue growth over the coming months, many investors remain hopeful about pushing up its value further than before this round was closed.
Conclusion
Ultimately, Workstream’s Series B has been a success for both the company and its investors. The round included investments from three venture capital firms – Acuity Ventures, 13DF, and Armory Capital – and several private investors. These investors are incredibly bullish on the future of Workstream due to the company’s innovative SaaS solutions, experienced team, and experience in the space.
For these investors, they were attracted to Workstream’s solutions that optimize employee management processes like onboarding, tracking performance reviews and milestones based on interaction analytics. The team’s technical and leadership expertise also proved attractive to these firms due to their combined decades of experience in tech and operations. Finally, Workstream has already demonstrated market acceptance with over 3500 customers using its solutions globally.
Overall, with the funding from this Series B financing round, which totaled $35 million in total., Workstream is positioned for rapid growth and should be able to continue providing innovative solutions to customers worldwide.
