Perceptyx Partnership With TCV: A CEO's Perspective
By John Borland, Perceptyx CEO - August 13, 2019
Yesterday we announced a partnership with TCV, one of the largest private equity firms backing public and private technology companies.
This partnership will allow Perceptyx to more aggressively pursue our product roadmap initiatives, which involves a more significant investment in technology, research and development, and engineering. The partnership with TCV represents the first external investment in Perceptyx since our founding in 2003. Profitable since the beginning, we have until now self-funded and fueled our own growth through product innovation and off-the-charts client satisfaction—achieving an enviable 95% client retention rate.
Investment Will Fuel Perceptyx’s Vision For The Future
Perceptyx has been growing quickly for quite some time now, experiencing double-digit annual year-over-year growth—of up to 50%—for nearly a decade. Throughout this growth, we’ve recognized the opportunity for a solution that goes far beyond what a traditional survey platform can provide. This led us to develop deep analytical capabilities, providing leaders with data-driven insights about their people to drive more successful business outcomes. Today, the market is asking for a broader talent management and people analytics platform that large enterprise organizations can leverage to better understand their people and manage their talent using a more data-driven and predictive approach.
A major part of our recent growth can be attributed to large organizations. As the employee survey and people analytics provider to hundreds of global enterprises, including 30 of the Fortune 100, we’ve become very good at understanding what large enterprise organizations need out of their employee listening programs. This understanding has allowed us to deliver tools that are the right size for them while also recognizing that they want all their talent management data in one place. Right now, many are using multiple systems to triangulate talent management within their organizations.
Our vision for the next several years is to take our current best-in-class employee listening/engagement survey platform and expand on it through new product offerings. Expanding to other related talent management applications will complement the survey work we do and give our clients more data in a single place leading to more informative insights. This widened view of an organization’s talent data will enable us to extract even greater insights, allowing our client organizations to know their people better and improve the key performance indicators that matter most to them.
Where We See Opportunity
As we look at large enterprise organizations, what we see is that CHROs are expected to come to the executive table with data-driven insights about their employees to help drive decision-making and the execution of business strategy. Nevertheless, to get these insights, technology remains clunky and piecemeal. Those stakeholders deserve the next generation of technology molded around solving the right problems, harnessing advances in science, while providing for an awesome user experience—they shouldn't have to be data scientists themselves.
Currently, we provide our customers with amazing insights about their people across the total employee experience. The integration of other business data is seamless, and continues to delight our customer base with richer insights. But just as we enhance our core product line, we are well aware of the complementary Human Capital Management (HCM) technologies that can come together to tell a richer story.
Entry into spaces like Performance will offer numerous ways to help individuals, teams, and organizations define success. Modernizing recognition systems will free up antiquated feedback processes and allow for on-the-spot celebration of people’s achievements, while more flexible 360 degree feedback tools will help the individual and the organization align on growth and career development opportunities.
These themes regularly appear as some of the biggest barriers (or drivers) of engagement, and such solutions will help organizations unlock the potential of their people even more.
Large organizations need the data and insights to feed into a single engine, where we can apply the latest data science and machine learning technology to identify risk, hotspots, and areas of success—in a way that can be quickly accessed and easily consumed. While the solutions we build have all stakeholders in mind, the continued development into newer frontiers will provide the CHRO and entire HR executive team with better insights about the organization.
Partnership Will Accelerate Product Initiatives & Geographic Expansion
Our vision of an integrated talent analytics platform that allows all members of the organization to interact and benefit is no small task—particularly at the enterprise level. There are a number of complicating factors in dealing with large, distributed, or global companies from a people analytics standpoint. But Perceptyx has long ago cut its teeth with these types of organizations and has a unique ability to deliver for them like no one else. Our seasoned expertise in running surveys and delivering people analytics for the world’s largest and most complex organizations is evidence that we are now ready to go beyond and provide more comprehensive and dynamic people analytics functions. These will allow us to give our clients insights about their people that have previously been inaccessible.
We believe the time to accelerate our growth and global reach is now. Perceptyx entered the European market with the opening of several European offices in 2018, which have been very successful. We are eager to build on this success and expand further into this and other regions of the world in the next few years.
The partnership with TCV will enable Perceptyx to move more quickly on both of our main strategic goals: expansion of our product offerings and global growth. We couldn’t be more excited by the opportunity to further accelerate innovation on behalf of our clients, to help them know their people and thrive!
Since 1995, TCV has raised over $15 billion across 10 funds and invested over $12 billion in leading technology companies. TCV investments include notable franchises such as Netflix, Facebook, Expedia, Spotify, Airbnb, Peloton, Splunk, and Zillow—and they have partnered with leading cloud/SaaS software companies such as Avalara, ExactTarget, Alarm.com, HireVue, GoDaddy, Twilio, Toast, Webroot, and Xero. TCV is headquartered in Menlo Park, California, with offices in New York and London. For more information about TCV, including a complete list of TCV investments, please visit http://www.tcv.com.