BC-based crowdsourcing software startup Thoughtexchange has closed an additional $4 million in new Series B financing. The startup said this is the final tranche of their Series B round and brings the total amount raised to $34 million.
The new capital will be used for research and development and innovating the startup’s platform.
With this new financing, Thoughtexchange has raised approximately $45 million in total funding to date.
A spokesperson for Thoughtexchange told BetaKit this latest capital included one new investor, Boston-based HarbourVest Partners, which contributed $3 million, while existing investors contributed the additional $1 million.
The startup initially raised $20 million for its Series B round in December 2019, which was followed by an additional $10 million extension in June. Investors in the Series B tranches include Information Venture Partners, Yaletown Partners, and Voyager Capital.
The new capital will be used for research and development, and innovating the platform. Rob Antoniades, co-founder and general partner at Information Venture Partners, said HarbourVest’s global reach and experience will be valuable as Thoughtexchange grows.
Thoughtexchange’s software is designed to allow leaders and employers to ask open-ended questions to groups ranging from 10 to 100,000 people. The software then uses data analysis and artificial intelligence to provide insights to leaders helping them create organizational change.
Use cases include revenue leaders learning what sales teams need to meet their targets, or development leaders learning about what’s important to those undergoing organizational change.
Thoughtexchange recently surpassed 100 corporate customers, which includes Fortune 500 brands like Allstate Insurance, McDonald’s, and American Airlines.
Although the startup experienced slow sales when the COVID-19 pandemic initially hit, usage climbed toward the end of March, with sales recovering in April, Dave MacLeod, co-founder and CEO of Thoughtexchange, told BetaKit in June. In a recent statement, Thoughtexchange claimed usage on its platform has “increased dramatically.”
“2020 has accelerated a permanent change to the way organizations operate,” said MacLeod. “Voices need to be heard, in an inclusive and unbiased way, if leaders want to uncover the issues that are getting in the way of growth and success.”
Image courtesy Thoughtexchange.