Impraise Inc. has raised $1.6 million in seed funding to replace the cumbersome annual performance appraisal with it’s web and mobile app for timely, actionable feedback between co-workers.
April - 2016 - Big companies like Accenture, Deloitte and Adobe have recently shown it: the annual performance review is finally disappearing. According to CEB, faulty performance review processes can cost a company of 10,000 people up to $35 million in lost productivity while 95% of managers are unhappy with the way performance reviews are conducted. Impraise has raised $1.6 million in seed funding to change this and replace the cumbersome appraisal with it’s web and mobile app for timely, actionable feedback between co-workers.
Some of the investors include Zenefit's early investor, Palm Drive Ventures, China Growth Capital and HenQ. Coen Van Duiven, CEO of HenQ said: “We strongly believe in the vision that direct- and peer-to-peer feedback will be the backbone of a platform which will create continuous improvement, progress and learning for people and organizations. Impraise itself is the perfect example of a true learning organization, needed to embark on that vision"
The Y Combinator-backed startup helps companies like Atlassian, Booking.com and M&C Saatchi, among a hundred more, to enable continuous feedback between colleagues increasing employee learning and productivity. “We’re building Impraise to help every single professional to grow and learn continuously with the incredible power of peer coaching. It’s a work environment companies have to aim for if they want to keep their top performers.” says CEO Bas Kohnke.
Instead of exchanging feedback only once or twice a year, Impraise is designed to fit into people’s workflow, making it easy to exchange feedback after meetings or projects, or frequently on a monthly basis. Since the company’s launch in late 2014 there have been over 300,000 feedback interactions on the platform. “Just imagine how much of the praise and coaching advice would have been forgotten by the time of the annual review.” says Kohnke.
Additionally, clients report that they save around 75% of the time they used to spend on the typical review while getting more insightful people analytics and increasing employee engagement.
“A recent study found that 42% of millennials want feedback every week. Today, feedback isn’t meant to define compensation but rather help people develop and create a socially engaged and pleasant workplace. This is the change we’re driving with Impraise.” says co-founder and Chief Growth Officer Steffen Maier. “Coaching needs or talent gaps are easily identified in real-time. What’s more, Impraise helps many fast-growing companies develop leadership skills, which the majority struggle with. Impraise helps with leadership development as many fast-growing companies struggle with developing their people into future managers.”
After graduating from Y Combinator, Impraise started its journey in San Francisco and recently moved its US headquarters to New York City. European operations are running from Amsterdam. The seed funding will be used to grow the team and further improve the product experience for Impraise’ clients. “Impraise can be already integrated with Workday but we want to support more HR systems and extend our learning analytics platform to make training and coaching more effective.” Kohnke said.
“Within Booking.com we work in such a collaborative environment that, at the end of the day I might be the manager of my team, but my team members are working next to each other side by side on a daily basis. So the feedback from colleagues might actually be more impactful and more appropriate than the feedback that I can provide my own team. Impraise is a great vehicle to enable that.” says Marc Jansen, Global Manager Learning and Talent at Booking.com.
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