(Bloomberg) -- Employee wellness startup BetterUp Inc. has raised $125 million at a $1.73 billion valuation.
The investment was led by Iconiq Growth, with participation from existing investors Lightspeed Venture Partners, Threshold Ventures and Plus Capital. New investors Salesforce Ventures, Sapphire Ventures and Mubadala Capital joined the round.
The business works with clients such as NASA and Snap Inc. 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 Inc.
For More: Kleiner-Backed Modern Health Valued at $1.17 Billion After Round
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.
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