GuideSpark Snags $22M Series C for Developing HR Communication Tools
GuideSpark, a company that makes custom videos and multimedia presentations for human resources departments, has received $22.2 million of Series C funding, according to Linda Itskovitz, vice president of marketing.
The Menlo Park, CA-based company will use the money for new hires and to develop every part of the business, from sales to product development to content, Itskovitz wrote in an e-mail. There’s no target number for new hires, though GuideSpark will continue to add jobs rapidly, Itskovitz wrote. The company has 200 employees now, up from 19 at the start of 2013.
GuideSpark creates custom videos, webinars, and e-books, intended to help companies more effectively communicate with employees about HR ideas, such as how open enrollment works. It has more than 500 customers, including 15 percent of the Fortune 500, according to a Jan. 27 statement.
“Traditional communication strategies, such as manuals, brochures and seminars, often leave employees confused, frustrated and uninformed,” said CEO Keith Kitani in the statement. “GuideSpark’s goal is to help companies reinforce their connection with employees, and we do this through voice, brand and other features not available on paper.”
Kitani founded the company in 2008, and originally intended it to be an online education business that coached employers on how to handle employee benefits and compensation, according to a 2014 San Francisco Business Times article. He switched to the current model in 2012, and saw revenue increase from $1.5 million to $4.1 million in 2013.
Kitani expected that number to triple in 2014, according to the article. Itskovitz said the company has not released its 2014 results yet and declined to provide a revenue number.
GuideSpark’s customers run the gamut, from American Express to Yelp to Dropbox.
The Series C round was led by new investor Meritech Capital Partners, and included existing investors IDG Ventures, New Enterprise Associates, and Storm Ventures, according to Dow Jones, which first reported the news. The company closed a $15 million Series B round in March 2014, and a $5 million Series A a year earlier.