Friday 23 April 2021

The Happiness Index raises £1.035m

The Happiness Index raises £1.035mWe recently caught up with the team behind innovative HR-tech specialist The Happiness Index, which is dedicated to transforming the way companies engage with their employees on workplace satisfaction and happiness. Co-founded in 2014 by serial entrepreneurs Matthew Phelan and Chris Hyland, alongside Tony Latter, the company has built a machine learning driven software platform which provides real-time feedback on employee engagement, trained on neuroscientific principles.

The technology operates by customising the employee engagement survey in real-time according to the responses given by workers to simple opening questions about their emotional wellbeing. The premise is that tailored questions – rather than a standardised pre-scripted set, as used in many traditional workplace surveys – will generate in-depth feedback on workplace happiness, giving employers actionable insights and ultimately leading to improved productivity.

The company has a range of products available and now boasts in the region of 70 paying clients, including several blue-chip companies. Financial metrics are moving in the right direction, with both Annual Recurring Revenue (ARR) and the proportion of recurring revenue increasing during the last year.

Covid has thrown the topic of employee wellbeing firmly into the spotlight and the issue is now front of mind for many CEOs and HR Directors. There are several players already operating in the space, for example the Bain-originated Net Promoter System. Indeed, many of us will, at some point, have completed an employee engagement survey. The key for the success of The Happiness Index will be whether the corporate mindset has shifted sufficiently towards emotional wellbeing and whether the company can effectively promote the USP of their software.

The company recently closed a £1.035m raise, with the funds coming from a range of individual investors. The plan is to invest that in further developing the technology and in honing the sales and marketing effort. It plans for a further fundraise in early 2022, this time backed by VC funds. We will watch its progress with interest.

Posted by Tania Wilson at '08:00' - Tagged: funding   start-up