With RiseSmart preparing to mark seven years as a company, we were very happy to announce an $11 million investment led by Accel-KKR, a technology-focused private equity firm with more than $2.3 billion in assets under management. Norwest Venture Partners, a Series A investor in RiseSmart, also participated.
This new investment will enable us to rapidly expand our sales and marketing organizations so we can continue to increase our share of the market as we enhance and differentiate our cloud-based outplacement services platform.
Corporate outplacement is a billion-dollar business in the United States. Accel-KKR’s investment in RiseSmart is further validation that this market is embracing new approaches to outplacement. It’s a huge endorsement for our ability to leverage the latest technologies with a strong focus on results. I firmly believe that with this investment, we are poised to do nothing less than lead a revolution in outplacement and career management.
Technology is transforming the industry
Over the past decade, we’ve watched online services in numerous fields use technology to drive a superior value proposition and customer experience. These organizations have grown to dominate the distribution of news, music and books, and make massive inroads in retailing, communications and banking.
That same kind of change is happening now in outplacement, as Fortune 500 companies and others rush toward a results-driven model that is more efficient, accessible, engaging and affordable. This funding gives us the resources we need to take full advantage of market shifts we see as inevitable.
‘RiseSmart has a unique service model’
Greg Williams, managing director of Accel-KKR, will join RiseSmart’s board of directors. In an announcement on the funding, Williams cited our company’s superior management team, client base, service-delivery model and technology platform as key factors in Accel-KKR’s decision to invest in RiseSmart.
“Accel-KKR has significant interest and a number of investments in the HCM space, and in this capacity we have had the opportunity to observe RiseSmart’s progress for some time,” Williams said in the news release. “RiseSmart has a unique service model that differentiates the company in the marketplace, and as a result, it has demonstrated a consistent ability to earn the business of Fortune 500 clients, as well as that of companies of all sizes. With the help of Accel-KKR’s investment, we fully expect RiseSmart’s momentum in gaining market share to grow dramatically.”
It’s important to note that RiseSmart has raised a total of $24.85 million since our founding in 2007, including previous investments from Norwest Venture Partners, Storm Ventures and angel investors.
I like to say, “Never underestimate the power of having a job.” RiseSmart clearly has a job to do: to forever change the outplacement services industry. This latest investment gives us even more confidence that we’re doing our job and doing it well.”