Ethena raises $30m Series B for modern and effective compliance training
Ethena, a modern compliance training platform, announced it raised a $30 million Series B, led by Lachy Groom, with participation from existing investors including Felicis, Neo, Homebrew, and others. Ethena also welcomed angel investors including Jack Altman, Mathilde Collin, William Hockey, Gretchen Howard, and Claire Johnson. It will use the capital to build out additional compliance product lines and expand its core training technology.
Roxanne Petraeus, CEO and Co-founder, Ethena: "Businesses are held to a much higher standard than ever before. Employees expect companies to build inclusive and ethical workplaces and compliance, when done right, does exactly that. Modern companies don't want to just 'check the box,' they want to use data-driven approaches to educate employees and spot issues proactively. This latest round of support allows us to continue building out a compliance operating system designed for today's teams."
When the company was founded in 2019, it was clear that the old way of doing compliance training dated videos sent out yearly, wasn't working. According to a Gallup poll, only 10% of employees strongly agree that they learned something from their compliance training. In contrast, Ethena's solution, which delivers digestible training over time, is highly effective: For example, learners who completed Ethena's Harassment Prevention training reported a 61% increase in confidence intervening on behalf of a colleague.
The company applies its innovative content and delivery method - bite-sized compliance trainings delivered over time via Slack or email to a variety of topics. These range from Code of Conduct, to diversity, equity and inclusion to hiring and interviewing. More than 50,000 active users from companies including Netflix, Zendesk, Carta, and Figma complete training activities on the platform each month.
Frances Frei, Professor of Technology and Operations Management at Harvard Business School and a member of Ethena's Advisory Board: "Ethena's superpower is in delivering training such that people actually learn. Yes, it's key that training is bite sized, delivered when it's maximally impactful, with modern, relevant content but the real impact comes from designing for efficacy. That's dramatically different from how things used to be done."
Victoria Treyger, Board member, Ethena and General Partner, Felicis Ventures: "With new regulations, compliance training has gotten more complicated; at the same time the evolving workplace has made it more necessary than ever. What Ethena does is the ultimate balancing act making compliance training effective and engaging while also meeting regulatory requirements. We're proud to support Ethena as they continue to be pioneers in this space."