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Avanoo is a rapidly-growing "culture story platform." The first-of-its-kind company uses storytelling, machine learning, and predictive analytics to help enterprises share employee stories that reinforce the best in their culture. The company also inspires employees to act on those stories in ways that drive improved culture and bottom line impact.
Although Avanoo has, by design, stayed out of the public view since its founding five years ago, the company is now ready to announce that it has successfully raised a second round of venture funding and obtained a $39 million valuation . Avanoo raised $3.4 million in its first round of seed funding led by Storm Ventures in 2015. Then in January of this year, the company raised another $4.5 million in a second round of venture capital funding led by Access Venture Partners and Storm Ventures.
In addition, the startup has seen rapid growth. In 2018, Avanoo tripled subscription revenue while staying cash flow positive throughout the year. That’s continued a growth trend: between 2015 and 2018, the company grew subscription revenue by 30x. Avanoo works with enterprises ranging from mid-size to Fortune 100 businesses. Notable clients include KPMG, eBay, and Kaiser.
“It’s incredible to see the meaningful impact we have on organization's cultures and on people's lives,” says Avanoo CEO and Cofounder Daniel Jacobs. “We are enabling organizations to scale and sustain cultures that create better lives, better teams, and better business outcomes.”
To help create powerful, positive organizational cultures, Avanoo uses a simple 3-phased approach:
- Inspiration: Avanoo shares emotionally-evocative employee stories via three-minute videos that inspire employees to connect with and reinforce the best of an organization’s culture.
- Ownership: Avanoo supports employees in sharing their own stories and ideas that reinforce and build on the best of their organization’s culture.
- Optimization: Through machine learning and predictive analytics, Avanoo helps organizations gain insights needed to improve employee experiences and business outcomes.
As an example, Amsted Rail, the world’s largest railcar trestle maker, has been working with Avanoo for three years to reinforce their commitment to leading their industry in the midst of an industry-wide digital transformation. With Amsted’s employees, Avanoo shares weekly three-minute stories of employees exemplifying behaviors connected to Amsted’s cultural commitment to innovation. Then, Avanoo makes it easy for employees to respond with their own innovative stories and ideas. As this happens, Avanoo uses powerful machine learning and predictive analytics in real-time to identify cultural insights and predict opportunities for continued emphasis and growth.
The business impact has been tangible. Amsted Rail's Director of HR Dianne Riboul shared, “Results of Avanoo’s work with Amsted Rail include many millions of dollars in savings and millions of dollars more in new product and process innovations.”
“I am lucky enough to be building a company that reflects my life’s purpose,” says Avanoo’s CEO. When he was 12 years old, Jacobs had the opportunity to watch someone he idolized speak to a large, standing-room-only crowd of people. Although Jacobs found the man’s words “mesmerizing,” when he met his hero in person afterward, he was heartbroken by what happened. The man whispered in his ear, “Here’s a secret, kid. I don’t believe any of what I just said. But that’s not important. What’s important is that they believe. Remember that. You’ll go places.”
“I remember feeling like everything I’d thought was real and meaningful came tumbling down,” Jacobs says. “I couldn’t understand how everything that guy had said sounded so authentic, but wasn’t. I realized in that moment that I did not want to be like that man.”
Instead, Jacobs has dedicated his life to figuring out how to align his work with his values, to live a life of purpose and meaning. And that purpose is to have a positive impact on humanity – impact with both breadth and depth. In achieving breadth, he seeks with Avanoo to impact millions of people around the world. But beyond that, he yearns to reach people at a deeper level by helping them to achieve their greatest potential. “What gives real meaning to me isn’t just reaching people, but reaching them and then supporting their positive impact in the world,” Jacobs explains.
The greatest challenges Jacobs faces in seeking to support others in opening to their greatest potential is that he must constantly do the same. “I have to figure out how to walk my talk. Sometimes, it’s hard and frustrating,” he says. “I believe I’m a better leader than I was last year, but I still have a long way to go.”
To young people looking to tap into their life purpose, Jacobs says, “We live in extraordinary times. Many of us can now dream about our purpose and go after it. But still, we must give ourselves the permission and space to dream, and then to act on those dreams. My advice is: Remember, you are more powerful than even you can imagine. What holds us back more than any person or life situation are the limitations we put on ourselves. See those limitations. Name the story behind them. Rewrite the story. And go make magic!”
