YFM secure £6m funding for Milton Keynes employee software firm WorkBuzz

By Stephen Emerson

23 June 2023

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CEO of Workbuzz Steven Frost

WorkBuzz has secured a £6.2m in a funding round led by YFM Equity Partners (YFM).

The fundraise also included existing investors Mercia and Foresight Group, which were both investing from the Midlands Engine Investment Fund (MEIF).

Launched in 2018 by employee engagement expert, Steven Frost, WorkBuzz has almost doubled in size in each of the last two years and currently serves over 400 organisations including Five Guys, Shell Energy and HS2.

The funding will enable WorkBuzz to pursue international expansion, enhance sales and marketing, and deliver new tech innovations to its growing roster of clients.

Steven Frost said: “We’re proud of what we’ve achieved so far and are very grateful for the support of our clients and partners, but it feels like we’re just getting started.

“This latest round of investment will be transformative – it’s 180 per cent more than in our entire history to date. We’re excited to scale up our investments in our platform and new innovations, co-creating these with our clients, as well as expand into the US.

“With generational talent shortages and disruptive technologies like generative AI, there’s never been a more exciting time to build an HR tech company and make an impact.”

This is the third funding round backed by Mercia and Foresight, which have supported the company since 2021 using funding from MEIF.

Adam Hart, investment director YFM, added: “WorkBuzz is going through a really exciting period of growth and has the ambition and drive to significantly expand upon this.

“They have been able to attract big name clients thanks to a combination of leading-edge software and clear domain expertise in the employee engagement space.

“As growing numbers of organisations seek to forge stronger connections with employees in a complex environment, WorkBuzz has the potential to make a huge impact in this market.”

WorkBuzz provides businesses with an employee engagement platform, backed by expert consultancy, which helps organisations gather real-time feedback from their people.

Keira Shepperson, director, Regional Funding at the British Business Bank, said: “The Midlands Engine Investment Fund invested in WorkBuzz in 2022 and helped to create new jobs in the region, supporting the company’s increase in annual revenue and growth.

“This follow-on funding will be utilised by the company to further its growth and venture out into international markets.

“The MEIF invests in innovative and growth focused companies in the Midlands region and its continued support of WorkBuzz shows the MEIF’s commitment to backing high growth potential SMEs in the region.”

The YFM team included Adam Hart, Zach Francis and Jamie Roberts.

YFM invests £2m to £10m into businesses with strong growth potential located across the UK through a regional network of offices in Reading, London, Leeds, Manchester, and Birmingham.

By Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.