This morning we announced a US$47 million (CAD$60 million) growth equity investment in Igloo. The investment was made by Frontier Capital and the funds will aid in building Igloo’s sales and marketing operations, expanding distribution channels, strengthening our global partnership with Microsoft, and further accelerating our footprint in the North American market.
Why is this important? According to MarketsandMarkets, the Enterprise Collaboration Market is expected to grow from USD $26.68 Billion in 2016 to USD $49.51 billion by 2021. While the market size seems astounding, it comes as no surprise. According to Gallup, last year employee engagement in the U.S. was stagnant with 85% of employees worldwide not engaged at work. This represents $7 trillion in lost productivity! However, companies with highly engaged workforces outperformed their peers by 147% in earnings per share.
What does all this mean? Forwarding thinking organizations around the world are addressing this issue head on through digital transformation and are looking to companies like Igloo to help them along the way. Part of their digital transformation involves assessing the value of traditional intranets which are too often cluttered, disorganized, and severely outdated, resulting in lack of adoption and purpose. In such chaotic environments, employees easily become disengaged. When workers feel disconnected, they often underperform.
Through our portfolio of digital workplace solutions, we are tackling this global issue, helping organizations improve communication, collaboration, knowledge sharing, and employee engagement across their business. We’re helping organizations create connections between people at work, but not at the expense of productivity or engagement, as social interactions take place within the context of work. The Igloo platform facilitates more effective two-way communication and is helping employees understand how their contributions are working toward achieving corporate objectives.
Last year, we helped 190 top brands across healthcare, hi-tech, financial services, retail, hospitality, and not-for-profit address this challenge. We fully expect to see continued (and rapid) adoption of digital workplace solutions in 2018 and beyond. This latest round of funding will help accelerate our ability to make it easy and more efficient for employees to communicate, collaborate, and share knowledge to get real work done. We do this through digital workplace solutions and it’s been a proven way to boost employee job satisfaction, which in turn correlates to higher customer satisfaction, productivity, and growth.