Employee engagement startup WorkBuzz has secured a new £4m funding round led by previous backer YFM Equity Partners.
Founded in 2018, WorkBuzz – which provides companies with employee engagement material and staff sentiment analysis – took off in the pandemic, as the work from home requirement forced businesses to ramp up their remote worker systems.
Having raised around £10m across a handful of rounds from 2021 to 2023, the follow-on investment led by YFM has almost doubled the investor’s support for the Milton Keynes-based company to £8.8m.
The fresh capital injection will go towards WorkBuzz’s next phase of expansion, with the company having particular interest in how recent AI advancements could support its offering.
The investment comes at a period of growth for the company. WorkBuzz grew its annual recurring revenue from £2.8m in 2023 to £5m as of March this year and has recently appointed a new chief product officer and partnerships director to target internal innovation and strategic value creation.
“WorkBuzz has made impressive strides since our initial investment, both in terms of revenue growth and product development,” said Sophie Tainton, portfolio director at YFM.
“The team continues to demonstrate their ability to execute on an ambitious vision, particularly with the introduction of AI-driven features and their plans for expansion.”
WorkBuzz’s most recent round saw the company raise £6.2m in a deal that also saw participation from Mercia Asset Management and Foresight Group.
“This follow-on investment provides the resources we need to continue expanding our platform, enter new markets, and create the future of employee listening with our clients,” added WorkBuzz founder and CEO Steve Frost.
“We look forward to this next chapter in our journey with YFM’s continued support.”
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