Stayf, a B2B SaaS platform that aims to empower organizations to prioritize their workforce’s wellbeing, has successfully closed a $702,000 (€650,000) pre-seed round led by AltaIR Capital, Yellow Rocks and Smart Partnership Capital, launching a new investment program for early-stage startups called Pre-Seed to Succeed. Somersault Ventures, Mark Younger (ex-Apple), and angels from Dentsu and Bain & Co also participated in the round.
Stayf, launched in 2023 by seasoned entrepreneurs with experience in the wellbeing sector, enables employees to form social bonds through community functionality and wellbeing challenges. After four months of utilizing the platform, the overall happiness of 2000 employees increased by 13% on average. The Stayf app has an average engagement level of 70-80% because it incorporates nudge theory (changing the environment to affect behaviour) principles through digital technology and leverages the power of social influence within a community. So, the company is designed to significantly influence the likelihood that the user engages in activities that increase their wellbeing.
Speaking on the fundraising, Co-founder & CEO of Stayf, Max Zhurilo, said:
According to a Leadership IQ study, approximately 74% of employees who kept their jobs said their productivity declined after company layoffs. Staff retention can indeed be challenging after layoffs, so what we do is help businesses unite their workforce in the aftermath and keep them engaged. Implementing only science-backed interventions proven with real-world results (University of Oxford, McKinsey, WHO), Stayf achieves a high engagement rate of 50-80% by designing the program to fit around modern busy personal and corporate lives. The new round that became possible through the Pre-Seed to Succeed investment program allows us to build up the sales team, enhance the product, and prepare for launch in the US.
Since its inception last year, Stayf has swiftly increased its reach, serving prominent firms such as Schneider Electric, InDrive, MARS, Fresha, the University of Oxford, and Playrix in the UK and MENA region. The corporate wellbeing industry was worth around $60 billion in 2023 and is expected to rise at a 6% annual rate to $100 billion by 2032.
Igor Ryabenkiy, Managing Partner & Founder of AltaIR Capital & Partner of the Pre-Seed to Succeed program, commented:
There are many startups that help businesses enhance employee involvement and performance. The team that knows how to build a sustainable business, build a community around the product, and face current challenges in the market will win the race. We think that Stayf has everything that it needs to become the winner.
Stayf has become the first company to receive the Pre-Seed to Succeed program funding. It is designed for startups in their early phases, with MVP and first traction. The startup focuses on various industries, including AI, B2B, SaaS, FinTech, Future of Work, Productivity Tools, Digital Health, and HRTech. The investment program provides the initial funding from participating venture companies, continuing help from seasoned professionals and mentors, and 50% of the following round for successful startups.
