Cloud-based employee performance management software startup 15Five Inc. said today it has raised $30.7 million in new funding to accelerate growth, scale sales and marketing, and to invest further in product development.

The Series B round was led by Next47 and included Matrix Partners, PointNine Capital, LAUNCH Fund, Newground Ventures, Bling Capital, Chaifetz Group and Origin Ventures.

Founded in 2011, 15Five offers cloud-based software designed to evaluate and improve employee performance. Offering web-based employee engagement and continuous performance management software, the company claims that its service helps create high performing teams by combining Objectives and Key Results, 1-on-1s, 360 reviews and employee appreciation in one simple weekly check-in.

15Five differentiates itself to others in the space by basing its product and “best self management approach” on the latest research in organizational development and positive psychology. More than 2,000 business using its cloud-based services. Notable names among its customers include HubSpot Inc, Citrix Systems Inc. and Spotify AB. A spokesman said that with millennials assuming leadership positions and Gen Z entering workplaces now, there’s more demand for employee-centric development tools.

“This latest round of funding signifies a paradigm shift in organizations’ people management practices, driven by a new generation of employees,” David Hassell, co-founder and chief executive officer of 15Five, said in a statement. “Millennials perform at their peak when given regular feedback, flexibility in how they work, and growth opportunities. Now as managers, directors and even founders, they see the value of investing in technologies that enable thriving workplaces.”

Including the new round, 15Five has raised $42.6 million to date.

Image: 15Five