Betterworks, which launched its formal product in June to help small- to medium-sized businesses manage and offer affordable perks to employees, has been growing like gangbusters. Every month, the company is adding about 500 to 800 vendors, that want to reach Betterworks' growing pool of employees, according to Paige Craig, co-founder and CEO, in a recent interview with Bambi Francisco.
Betterworks recently received $8 million in venture funding from Redpoint Ventures for a valuation that was a reported $100 million. Craig, who founded the start-up back in November 2010 with partners Zao Yang and George Ishii, also said that Betterworks now works with more than 300 companies, representing 40,000 employees.
Here are some of the highlights:
- Betterworks is trying to match small businesses with vendors that want customers. Because Betterworks aggregates the employee pool of small businesses, it can gain purchasing power to get discount deals, which are then offered to employee clients.
- Companies (those who want to provide perks to employees) pay about $2 per employee per month, to be part of the service. Employers spend a median amount of $50 to $75 per employee a month to provide perks. Perks range from gym memberships, takeout food, snacks, massage services, dry cleaning services, and so on.
- Vendors pay Betteworks 5% for whatever is sold.
- The conversion rate runs the gamut from zero to very successful conversions (Craig would not elaborate).
- The company plans to stick with targeting small- to medium-sized businesses and expand to different regions.
