Rajeev Behera is coming after your performance reviews. “It’s an extremely broken process,” he says. “Ask anyone about them, and no one is really happy.”
In 2014, Behera and two cofounders set out to tackle the problem with a new software company called Reflektive, quickly gaining the support of top investment firms such as Andreessen Horowitz. And Reflektive has set its own near-annual tradition of raising money most years since. The latest: a $60 million Series C funding round led by growth equity specialist TPG Growth.
Reflektive is not disclosing its valuation at its new financing, but the company was valued at $135 million after its Series B led by Lightspeed Venture Partners in January 2017, according to data from PitchBook. A source with knowledge of the new investment said the company raised an up round at a higher valuation than its previous deals.
Some software companies boast that without a physical product, their costs remain relatively cheap as they scale. Reflektive’s CEO is taking a more aggressive route to build on what he says is early market leadership in the performance management category. Reflektive has raised more, hired more and reached more revenue than the field, Behera says, with 400 corporate customers, up from 200 a year ago. Reflektive employs about 130 people in San Francisco and in a research office in Bangalore, India.
“The first two years were building our real-time performance management suite, and there isn’t anyone close to us,” says Behera. “Now the focus is on building out the rest of the platform, and that means more R+D teams.”
Founded out of Behera’s experiences at Disney managing a team of 85 developers, many of whom weren’t getting proper feedback from their superiors, Reflektive encourages customers to use more regular feedback to keep employees improving their efforts more regularly. New areas the company plans to look at include learning, compliance and training. While plenty of startups are tackling those issues on their own, such as Pluralsight in corporate training, Behera says his goal is to create a command center for a manager to see how their employees are performing and adding skills, making companies like Pluralsight more of a potential partner.
Reflektive’s customers include AAR, Comcast, Conde Nast, Instacart and Protective Life. About half its customers are mid-market companies, predominantly early adopters in tech, and half are enterprise customers increasingly in areas such as insurance.
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