Total amount raised
$57.6 Million
Latest funding date
3/1/2022
Location
Forma has successfully raised funding over four rounds, with the latest being a Series B round involving nine investors, including Ribbit Capital as one of the lead investors. The company is backed by a total of ten investors, with Designer Fund and Emergence Capital being among the most recent.
Forma offers a modern-day benefits platform that allows employees to choose health and wellness options that suit them, featuring customizable spending accounts and various payment methods. Keep reading to explore the intricacies of Forma's fundraising journey and the investors backing this innovative platform.
What Is Forma?
Forma is a modern-day benefits platform based in Fremont, California, specializing in employee benefits, enterprise software, health care, and wellness. The company provides employees with the flexibility to choose health and wellness options that suit them best.
With an employee count ranging between 101-250, Forma has established itself as a significant player in the industry. The platform offers a range of products, including Lifestyle Spending Accounts (LSA), Health Reimbursement Arrangements (HRA), Health Savings Accounts (HSA), and Flexible Spending Accounts (FSA), aimed at simplifying benefits administration for companies and enhancing employee satisfaction.
How Much Funding Has Forma Raised?
- Pre-Seed Round
- Amount Raised: USD 120,000
- Date: January 2019
- Lead Investors: AngelPad
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the development of the platform and establish initial operations.
- Seed Round
- Amount Raised: USD 2,500,000
- Date: September 2019
- Lead Investors: Stripe
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and expand the customer base.
- Series A Round
- Amount Raised: USD 15,000,000
- Date: November 2020
- Lead Investors: Emergence Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the product and enhance market presence.
- Series B Round
- Amount Raised: USD 40,000,000
- Date: March 2022
- Lead Investors: Ribbit Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate product development, invest in sales and marketing, and expand the team.
Total Amount Raised: USD 57,620,000. Current Valuation: Not publicly disclosed.
Key Investors
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm known for investing in financial technology companies. They led Forma's Series B funding round.
- Investment Focus Areas: Financial technology, innovative financial services.
- Notable Investments: Robinhood, Coinbase, Credit Karma.
- Emergence Capital
- Details: Emergence Capital is a venture capital firm that focuses on early and growth-stage enterprise cloud companies. They participated in Forma's Series B funding round and previously invested $15 million in 2020.
- Investment Focus Areas: Enterprise cloud, SaaS companies.
- Notable Investments: Salesforce, Zoom, Veeva Systems.
- Stripe
- Details: Stripe is a technology company that builds economic infrastructure for the internet. They participated in Forma's Series B funding round and previously invested $2.5 million in 2019.
- Investment Focus Areas: Economic infrastructure, online payment systems.
- Notable Investments: Monzo, Paystack, Step.
- Designer Fund
- Details: Designer Fund is a venture capital firm that invests in startups co-founded by designers. They participated in Forma's Series B funding round.
- Investment Focus Areas: Design-centric startups, user experience.
- Notable Investments: Gusto, Stripe, Dropbox.
- AngelPad
- Details: AngelPad is a startup accelerator that provides mentorship and seed funding. They participated in Forma's Series B funding round and Forma completed its seed-stage accelerator program in 2018.
- Investment Focus Areas: Early-stage technology startups across various sectors.
- Notable Investments: Postmates, CoverHound, Buffer.
What's Next for Forma?
Forma stands at the cusp of significant growth opportunities, driven by the increasing demand for flexible and customizable employee benefits. With $40 million in Series B funding, the company plans to accelerate product development, expand its workforce, and enhance its employee-choice concept to cover more benefit categories. This expansion is poised to cater to a growing market of over 125 companies, including major names like Zoom and Stripe.
Future fundraising opportunities appear promising as Forma continues to attract interest from high-profile investors. The company's rapid growth, marked by a four-fold increase in revenue and a 330% rise in its customer base, positions it well for additional investment rounds. However, challenges such as scaling operations, maintaining service quality, and competing with other benefits platforms could pose hurdles along the way.
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