- Cleo — a leading family benefits platform supporting working families in the planning stage through the teenage years — announced recently that it raised a $40 million Series C investment
Cleo — a leading family benefits platform supporting working families in the planning stage through the teenage years — announced recently that it raised a $40 million Series C investment led by Transformation Capital with participation from Glynn Capital, PruVen Capital, and Gaingels and existing investors Greylock, NEA, and Felicis. And in connection with this round, Transformation Capital Managing Partner Mike Dixon will join Cleo’s Board. This round of funding brings Cleo’s total funding to $83 million.
Since being founded in 2016, Cleo has become the industry’s most complete and high-impact family benefits platform. And its products and services help a diverse set of more than 100 leading employers attract, retain, and drive better health outcomes for working parents in over 55 countries.
Over the last year, the company saw 8x membership growth and over 100% increase in revenue from employers across several verticals, including Fortune 50 technology companies, food and beverage companies like Schwan’s Company and companies with large, distributed workforces like Learning Care Group.
Cleo saw exceptional growth within current customers like Salesforce which expanded their use of Cleo to include the Cleo Kids product, supporting working parents with children up to age 12. And following the recent addition of new executives in finance, sales and human resources, Cleo will continue to grow its team to support increasing demand, particularly focused on product and engineering.
The company pairs member families with an individual coach that proactively guides them through every up and down of family planning, expecting a child, and raising a family — all while enabling working parents to thrive in their workplace. And through Cleo’s comprehensive app, they are able to access personalized content, a supportive parent community, and a global network of certified experts including therapists, doulas, lactation consultants, among others.
KEY QUOTES:
“The new era of dependent care is here. What we’ve seen in the last twelve months is a massive acceleration in a trend of companies of all sizes looking for ways to better support their employees in a holistic manner. A recent report shows that 36 percent of working parents with children under 10 are considering leaving the workforce and another 30 percent are considering downshifting their careers. Employers see these alarming numbers and understand that when they proactively address their employees’ needs for support around mental health, pregnancy, and early childhood, they’re able to reduce healthcare spend while also improving retention rates, ultimately saving millions of dollars for large employers.”
— Sarahjane Sacchetti, CEO of Cleo
“Cleo is at the forefront of a new and burgeoning category of healthcare focused on families and has been successful in meeting the moment in which employers are seeking ways to support working parents. Cleo’s meaningful services and support, proven outcomes, and role as the leading employer-sponsored family health benefit position the company to fundamentally reshape the benefits landscape and improve the lives of generations of parents and children.”
— Mike Dixon, Managing Partner at Transformation Capital
