BetterWorks, a startup with a platform for engaging and rewarding employees at small and medium-size business, has sealed an $8 million first institutional round of funding.
The BetterWorks platform is all about perks: the employee rewards that lie beyond salary and beyond what’s legally required. Benefits such as gym memberships, education reimbursement, daily or weekly catering, child care and more are part of many recruitment and retention programs. But Betterworks CEO Paige Craig told VentureBeat, “Our service is for companies that want to immediately save time and money as well as companies that want to invest in their employees for the long-term return on increased productivity in the workforce, longer retention of employees and better recruitment.”
The new funding will allow the startup to expand its offerings nationally, improve its core product and provide better customer service. Over the next year, the startup plans to bring its services to every major market in the United States.
In the near future, BetterWorks will also be rolling out a new product to “address the concept of intangible rewards,” said Craig, who has been a prominent angel investor in the Los Angeles area for a couple years. “Our current product focuses on tangible rewards: meals, coffee, gym, entertainment, education, etc. But we also realize that the intangible rewards are a huge winner for companies and employees alike and we’ll be rolling this out soon.”
The startup’s Perks platform lets its customers user a web-based interface to offer employees better rewards. In addition to organizing, streamlining and measuring the benefits program, Perks also connects companies to local merchants who can offer employee discounts.
Redpoint Ventures led the current funding round. The L.A.-based company has raised $10 million to date, including a previous angel round.
Redpoint’s Satish Dharmaraj will be BetterWorks’ newest board member. With regard to working with a Los Angeles-based startup, he told us, “We always look for great people using the Internet to disrupt huge markets. No matter where they are we go after them and we find them. … Sometimes its too easy to get caught up in the [Silicon] Valley culture and media. In L.A., you get the chance to build great companies outside of the spotlight. Gives you a more balanced perspective.”