Seed Round to fund sales expansion and product enhancements.
Seattle, WA – February 10, 2016. Health Tech Capital is the lead investor in a $1.5M syndicated seed round for Tenacity, a SAAS-enabled workforce retention and productivity solution for call centers and business process outsourcers. Tenacity is a graduate of the Techstars accelerator.
“Tenacity has uncovered novel strategies to save companies millions of dollars by using advanced analytics to build a workplace social community, reduce stress, and impact self-defeating employee behaviors,” said Don Ross, the Managing Director Health Tech Capital. “Because Tenacity has proven its impact on key business metrics, it is turning the heads of COO’s and other operational leaders. Even heads of sales become advocates – cost cutting is an important strategy in winning deals.” Mr. Ross will join the Tenacity board.
“HealthTech Capital understands the intersection of human thriving and business outcomes better than any other investment group,” said Ron Davis, CEO of Tenacity. “We are thrilled to tap into their expertise and vast network across industries with high customer service needs.”
Based on breakthroughs from MIT’s Media Lab, Tenacity’s unique technology identifies problems in a workplace social network and automatically deploys data-driven solutions and novel incentives. The first two installations are a large telecom provider and a global BPO. Results show that agent attrition was cut in half and absenteeism dropped by 12% as productivity and customer experiences improved. For both, Tenacity generated over a 700% return.
“Tenacity addresses one of the biggest needs faced by BPOs and Call Center Companies,” said Etienne Deffarges, Band of Angels Member and President of HBS Alumni Angels – Northern California. “I ran a 1.2 billion dollar business for Accenture, one of the world’s biggest BPOs. The industry has struggled for decades to find an affordable way to invest in its human capital. Tenacity’s ability to efficiently create mentorship and a sense of team, and to reduce the stress of the repetitive work, will surely leave a spectacular mark on the industry.
The investment syndicate includes Health Tech Capital, Harvard Business School Angels, Band of Angels, Launch Capital, Seattle Angel Fund, Seattle Angel Conference, and Rising Tide Fund. Individual investors include Larry Summers, former Secretary of the Treasury, Ted Meisel, CEO that sold Overture to Yahoo for $1.6B, Paul Dacier, Chief Legal Officer of EMC Corp, and Steve Meyers, former CTO of OptumHealth (UnitedHealth Group).
Based in Seattle, WA, Tenacity uses a science-based insights to engage, retrain, and optimize workforces, such as those in contact centers. Actionable analytics and an automated scalable solution reduces attrition, increases productivity, improves customer service, and delivers a high ROI for customers.
About HealthTech Capital
Based in Silicon Valley, HealthTech Capital (HTC) is a group of nationwide private investors dedicated to funding and mentoring new companies at the intersection of healthcare and technology. HTC members include Angel Investors, Venture Capitalists, Industry Members, Payers, and Providers. Each brings important perspectives that add value to early stage companies.