Humu (software)

Last updated

Humu is a software company that uses machine learning to send "nudges," small recommendations based in nudge theory, to employees at work. [1] [2] Since August 2023, it is a subsidiary of Perceptyx.

Contents

History

Humu was founded in May 2017 by former Google executives Laszlo Bock, Wayne Crosby, and Jessie Wisdom. Before founding Humu, Laszlo Bock served as Google's original Head of People Operations. [3] Humu exited stealth mode in October 2018 with $40 million in funding. [4]

Humu analyzes company data and employee feedback to identify changes likely to improve employees' happiness, performance, and retention. [5] [2] The platform then delivers "nudges," short messages urging users to change their behavior. [6]

The company holds a trademark on "Nudge Engine," based on the behavioral economics concept of nudge theory from Nobel Prize-winning economist Richard Thaler and popularized in Thaler's 2008 book Nudge, co-authored with legal scholar Cass R. Sunstein. The book argues that small cues can help people make better choices. [1]

Notable customers include Fidelity Investments, Silicon Valley Bank, Lumen, Farfetch, [6] and American fast casual restaurant chain Sweetgreen. [3]

A 2019 trademark dispute between Humu and American video streaming service Hulu [7] was settled in federal court. [8]

On June 24, 2021, Humu announced Humu Business Edition, a personal coach for mid-sized businesses. [9]

In August 2023, Humu was acquired by Perceptyx. [10] [11]

Funding

In May 2019, Humu announced it had raised $40 million in series A and B funding led by Index Ventures and IVP. [12]

See also

Related Research Articles

A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses that do not intend to go public, startups are new businesses that intend to grow large beyond the solo-founder. During the beginning, startups face high uncertainty and have high rates of failure, but a minority of them do go on to become successful and influential.

Behavioral economics is the study of the psychological, cognitive, emotional, cultural and social factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by classical economic theory.

<span class="mw-page-title-main">Richard Thaler</span> American economist

Richard H. Thaler is an American economist and the Charles R. Walgreen Distinguished Service Professor of Behavioral Science and Economics at the University of Chicago Booth School of Business. In 2015, Thaler was president of the American Economic Association.

<span class="mw-page-title-main">Salesforce</span> American software company

Salesforce, Inc. is an American cloud-based software company headquartered in San Francisco, California. It provides customer relationship management (CRM) software and applications focused on sales, customer service, marketing automation, e-commerce, analytics, and application development.

Libertarian paternalism is the idea that it is both possible and legitimate for private and public institutions to affect behavior while also respecting freedom of choice, as well as the implementation of that idea. The term was coined by behavioral economist Richard Thaler and legal scholar Cass Sunstein in a 2003 article in the American Economic Review. The authors further elaborated upon their ideas in a more in-depth article published in the University of Chicago Law Review that same year. They propose that libertarian paternalism is paternalism in the sense that "it tries to influence choices in a way that will make choosers better off, as judged by themselves" ; note and consider, the concept paternalism specifically requires a restriction of choice. It is libertarian in the sense that it aims to ensure that "people should be free to opt out of specified arrangements if they choose to do so". The possibility to opt out is said to "preserve freedom of choice". Thaler and Sunstein published Nudge, a book-length defense of this political doctrine, in 2008.

<span class="mw-page-title-main">Tony Hsieh</span> American businessman (1973–2020)

Anthony Hsieh was an American internet entrepreneur and venture capitalist. He retired as the CEO of the online shoe and clothing company Zappos in August 2020 after 21 years. Prior to joining Zappos, Hsieh co-founded the Internet advertising network LinkExchange, which he sold to Microsoft in 1998 for $265 million.

<i>Nudge</i> (book) 2008 book by Richard H. Thaler and Cass R. Sunstein

Nudge: Improving Decisions about Health, Wealth, and Happiness is a book written by University of Chicago economist and Nobel Laureate Richard H. Thaler and Harvard Law School Professor Cass R. Sunstein, first published in 2008. In 2021, a revised edition was released, subtitled The Final Edition.

Nudge theory is a concept in behavioral economics, decision making, behavioral policy, social psychology, consumer behavior, and related behavioral sciences that proposes adaptive designs of the decision environment as ways to influence the behavior and decision-making of groups or individuals. Nudging contrasts with other ways to achieve compliance, such as education, legislation or enforcement.

Fundbox is a working capital platform based in San Francisco that offers credit and payments as a service to small businesses. Founded in 2013, the company innovates technology to help optimize cash flow for small businesses.

<span class="mw-page-title-main">Unicorn (finance)</span> Startup company valued at over $1 billion

In business, a unicorn is a startup company valued at over US$1 billion which is privately owned and not listed on a share market. The term was first published in 2013, coined by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures.

<span class="mw-page-title-main">Laszlo Bock</span> American businessman

Laszlo Bock is a Romanian-born Hungarian American businessman, who is co-founder and former CEO of Humu. He was formerly the Senior Vice President of People Operations at Google, Inc.

Cornerstone OnDemand, Inc. is a cloud-based people development software provider and learning technology company. The company was publicly traded on the NASDAQ stock exchange under the ticker symbol Nasdaq: CSOD until it was acquired by private-equity firm Clearlake Capital in 2021. Cornerstone started as CyberU, which provided online corporate training and education for adults, but eventually shifted focus to human resources software.

Playground Global is an early-stage venture capital firm that invests in deep tech and assists startups with software, hardware, machine learning, marketing, talent and design. The company was founded in 2015 by Andy Rubin, Peter Barrett, Matt Hershenson and Bruce Leak. Playground offers startups support with engineering, distribution, manufacturing and financing in exchange for equity.

<span class="mw-page-title-main">Jay Vijayan</span> Indian-American entrepreneur

Jay (Jayaprakash) Vijayan is a US-based entrepreneur, engineer, inventor, and investor. He is the founder and CEO of Tekion Corp, a SaaS company based in the United States of America. Prior to founding Tekion, he served as chief information officer (CIO) at Tesla Motors. He also worked for VMware and Oracle.

<span class="mw-page-title-main">Lucid Motors</span> Electric vehicle company based in Newark, California, United States

Lucid Group, Inc. is an American automotive and technology company that makes electric vehicles and supplies advanced electric vehicle powertrain systems. The company is headquartered in Newark, California. In September 2021, the company began producing the Lucid Air sedan at its factory in Casa Grande, Arizona. The company expects to begin production of its second model, the Lucid Gravity SUV, in late 2024. Lucid also supplies and develops powertrain technology to other automakers, including Aston Martin.

Zeta Global Holdings Corp. is a data-driven marketing technology company which was founded in 2007. Zeta offers companies a suite of multichannel marketing tools focused on creating, maintaining, and monetizing customer relationships.

Qumulo is an American data storage company based in Seattle, Washington. Founded in 2012, it offers products and services to help other companies manage and curate large amounts of data.

Merlin Kauffman, is an American technology entrepreneur and investor. He is the founder and executive chairman of the on-demand massage app, Soothe, Inc.

Guido Baltussen is a Dutch economist who is professor in Behavioral Finance at Erasmus University Rotterdam and Head of Factor Investing and co-head of Quant Fixed Income at Robeco Asset Management.

Sludge in behavioral economics refers to any form of design, administrative, or policy-related friction that systematically impedes individuals' actions or decisions. It encompasses a range of frictions such as complex forms, hidden fees, and manipulative defaults that increase the effort, time, or cost required to make a choice, often benefiting the designer at the expense of the user's interest.

References

  1. 1 2 "Can the Occasional 'Nudge' Make You Better at Your Job?". Yale Insights. 12 April 2019. Retrieved 2021-10-18.
  2. 1 2 Winkler, Elizabeth (2020-01-31). "Laszlo Bock Thinks Machine Learning Can Make Work Better". Wall Street Journal. ISSN   0099-9660 . Retrieved 2021-10-18.
  3. 1 2 Wakabayashi, Daisuke (2018-12-31). "Firm Led by Google Veterans Uses A.I. to 'Nudge' Workers Toward Happiness". The New York Times. ISSN   0362-4331 . Retrieved 2021-10-18.
  4. Stolzoff, Simone (8 October 2018). "After two years in stealth mode, the former head of HR at Google reveals his new startup". Quartz. Retrieved 2021-10-18.
  5. "Analysis | Google's former head of HR wants to help people act more human at work". Washington Post. ISSN   0190-8286 . Retrieved 2021-10-18.
  6. 1 2 Shellenbarger, Sue (2019-04-15). "The Robots That Manage the Managers". Wall Street Journal. ISSN   0099-9660 . Retrieved 2021-10-18.
  7. "Humu v. Hulu: Trademark to-do leads to new lawsuit". The Mercury News. 2019-01-23. Retrieved 2021-10-18.
  8. "Hulu Says Something Smells Fishy About HR Startup Humu's Name". The Recorder. Retrieved 2021-10-18.
  9. "Humu Launches Business Edition, Making Effective Teamwork a Habit For Mid-Sized Businesses". finance.yahoo.com. Retrieved 2021-10-18.
  10. "Perceptyx Acquires Behavioral Science Pioneer Humu". blog.perceptyx.com. 2023-08-02. Retrieved 2023-11-22.
  11. Lucas, Emmy. "Former Google Exec's Startup Humu Acquired By HR Platform Perceptyx". Forbes. Retrieved 2023-11-22.
  12. "Laszlo Bock's new HR startup: machine learning, science and a 'little bit of love'". The Mercury News. 2018-05-01. Retrieved 2021-10-18.