Sounding Board raises cash as startups wake up to executive coaching
In an unprecedented work environment defined by distributed teams and virtual-only communication, two co-founders think their 2018 bet reigns truer than ever: mentors need mentorship, too.
Christine Tao and Lori Mazan, the brains behind Sounding Board, want to train any leader within an organization to be a better leader. The San Francisco startup connects anyone from first-time managers to C-suite executives with coaches through a marketplace.
Revenue has doubled or tripled every year since 2016, which the company says hovers in the multi-millions" range. But in the wake of the coronavirus pandemic, Sounding Board has seen demand for its platform grow even more. Quarterly bookings have increased 3.4 times from Q2 2020, and in the last five months, monthly revenue has doubled.
On the heels of this growth, the co-founders say that Sounding Board's next step as a startup is to grow beyond coaching services and into a platform that can show leaders how those newfound skills are impacting business development. The new product is meant to serve as a hub and roadmap where a participant and coach can track insights, progress and behaviors.
Within the platform, a user can schedule sessions with a coach, get matched to someone, as well as look at resources and complete tasks assigned to them. Beyond that, there is a feature that allows the coach and the manager to measure goals on an ongoing basis, similar to OKR-related software.
The content is great, but unless you can apply that content, it's not very useful," Mazan said. So this coaching is a way to help people apply the insights and the learning they've gotten from some kind of content and really utilize that in the workplace."
The new product takes the monthly in-person summit that your organization used to call executive coaching and turns it into a living, breathing part of a manager's workflow.
Beyond helping its users have a better temperature check on their progress, the product will help Sounding Board scale its services. Now any tutor on Sounding Board has more ways into a user's mind and workflow, so every call isn't synchronous and can be managed more evenly.
The co-founders see their long-term differentiation living in this feature. Anyone can create a marketplace, but it takes seamless, easy-to-use tech to track the effectiveness of what happens post-coaching.
Tao admits that the startup isn't for everyone. Sounding Board has seen early adoption around enterprise companies that are in a late-stage, hyper-growth mindset heading toward an IPO. That level of maturity is a sweet spot for a third-party such as them to come in and scale leaders across teams. Customers include VMware, Uber, Plaid, Chime and Dropbox.
That said, within organizations, 60% of Sounding Board's users are first-time managers, 30% are middle-tier and 10% are C-suite. The co-founders think these numbers indicate a broader demand for mentorship beyond what their competitors offer, which often sticks to C-suite life coach territory or stress management.
Everyone is starting to realize that we're going to have to offer coaching broader than just in the C-suite, and sometimes they don't really know what that means," said Mazan.
The realization, along with COVID-19 tailwinds, has helped Sounding Board attract new millions in venture capital. The startup tells TechCrunch that it has raised a $13.1 million Series A led by Canaan Partners. Other investors include Correlation Ventures, Bloomberg Beta, Precursor Ventures, as well as Degreed founder David Blake and Kevin Johnson, the former CEO of Udemy.