Total amount raised
$57.6 Millions
Latest funding date
3/1/2022
Location
Forma has successfully raised $55 million over two funding rounds, with the latest being a Series B round. The platform offers a modern-day benefits solution, allowing employees to choose health and wellness options that suit them.
Keep reading to explore the intricacies of Forma's fundraising journey and the investors backing this innovative platform.
What Is Forma?
Forma, founded in January 2017 by Jason Fan and Max Hsieh, is headquartered in Fremont, California. The company specializes in providing a modern-day benefits platform that allows employees to choose health and wellness options that suit them.
With a team of 101-250 employees, Forma offers customizable benefits through various spending accounts like LSA, HSA, FSA, and HRA. Their platform simplifies benefits administration and enhances employee satisfaction.
Forma's intuitive interface enables employees to spend their benefits stipend through a curated collection of vendors offering preferred pricing, eliminating the hassle of reimbursements.
How Much Funding Has Forma Raised?
- Pre-Seed Round
- Amount Raised: $120K
- Date: January 2019
- Lead Investors: AngelPad
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support early-stage development and growth.
- Seed Round
- Amount Raised: $2.5M
- Date: September 2019
- Lead Investors: Stripe
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support initial scaling and development.
- Series A
- Amount Raised: $15M
- Date: November 2020
- Lead Investors: Emergence Capital
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support growth and expansion of the benefits platform.
- Series B
- Amount Raised: $40M
- 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 make key hires across the organization.
In total, Forma has raised $57.62M. The current valuation is not publicly disclosed.
Key Investors
- Ribbit Capital
- Details: Ribbit Capital is a venture capital firm that invests in early-stage companies. They led Forma's Series B funding round.
- Investment Focus Areas: Fintech, financial services, related technologies.
- Notable Investments: Robinhood, Coinbase, Credit Karma.
- Emergence Capital
- Details: Emergence Capital is a venture capital firm focused on early and growth-stage enterprise cloud companies. They led Forma's Series A round and participated in the Series B round.
- Investment Focus Areas: Enterprise cloud companies, SaaS, business software.
- 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 Seed and Series B rounds.
- Investment Focus Areas: Payment processing, financial infrastructure, internet commerce.
- Notable Investments: Monzo, Paystack, Fast.
- AngelPad
- Details: AngelPad is a seed-stage accelerator program that helps startups with funding and mentorship. Forma completed the AngelPad accelerator program in 2018.
- Investment Focus Areas: Various sectors with a focus on early-stage technology startups.
- Notable Investments: Postmates, CoverHound, Buffer.
- Designer Fund
- Details: Designer Fund invests in companies that prioritize design. They participated in Forma's Series B round.
- Investment Focus Areas: Design-driven startups, user experience, product design.
- Notable Investments: Gusto, Stripe, Asana.
What's Next for Forma?
Forma stands at the cusp of significant growth opportunities. With $40 million in Series B funding, the company plans to expand its product offerings and double its workforce by the end of 2023. The demand for flexible and customizable employee benefits is on the rise, and Forma is well-positioned to capitalize on this trend by enhancing its employee-choice concept and covering more benefit categories.
Future fundraising opportunities seem promising as the company continues to grow and attract interest from both existing and new investors. However, challenges such as scaling operations, maintaining quality, and competing with established players in the benefits market could pose hurdles. Navigating these challenges will be crucial for Forma as it aims to transform the employee benefits landscape.
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