Awardco, a Lindon-based HR tech firm, has raised $165 million in Series B funding, surpassing a $1 billion valuation to expand its global recognition platform and accelerate product innovation.
Lindon, Utah – May 20, 2025
In a cooling venture market where billion-dollar valuations are increasingly rare, Awardco has defied the trend. The Lindon-based HR tech company announced today it has raised $165 million in a Series B funding round, pushing its valuation above $1 billion. The round was led by Sixth Street Growth (San Francisco, New York, and Austin) and Spectrum Equity (Boston, San Francisco), with continued support from General Catalyst (San Francisco) and Ryan Smith, co-founder of Qualtrics, owner of the Utah Jazz, and partner at HXCO (Sandy, UT).
"This is a major milestone, especially with the partners that invested in us," said Steve Sonnenberg, CEO and co-founder of Awardco. "It’s a big testimony to all the hard work we've been putting in—especially in a market that's very different from when we raised our Series A in 2021."
Since that Series A, Awardco has grown its revenue 4x while maintaining cash flow neutrality—an uncommon feat in today’s tech landscape. "We put our heads down, built great products, stayed customer-obsessed, and hired the best people. That gave us the ability to raise on our terms," Sonnenberg shared with TechBuzz.
The company now serves 6 million users across 160+ countries, with clients including Adobe, AT&T, Hertz, and Pacific Life. Built in partnership with Amazon Business, Awardco offers access to more than 300 million reward options—from merchandise and gift cards to charitable donations and custom experiences—making it the world’s largest configurable rewards marketplace.
But this new investment isn't just about scaling—it's about evolving.
"Act One was to own the rewards and recognition space. Act Two is about deepening engagement," Sonnenberg explained. "Our customers are telling us, 'You're not just collecting data—you’re driving behavior and helping us build culture in a distributed world.'"
That future includes listening tools like pulse surveys, performance-based incentives, and real-time nudges powered by AI. "Recognition doesn’t need to be ceremonial—it needs to happen in the moment," Sonnenberg said. "AI will help us identify those moments and nudge people to celebrate them inside Slack, Teams, or Outlook—wherever they work."
Awardco’s ability to embed recognition directly into daily workflows is a key differentiator. "We live where the employee is," said Sonnenberg. "That makes recognition more frequent, more natural, and more impactful."
"Recognition is no longer a nice-to-have—it’s a strategic imperative," added Nari Ansari, Managing Director at Sixth Street Growth. "Awardco is leading the way with a scalable, global-first platform that serves organizations of all sizes, and we’re excited to partner with them during this next phase of growth."
Awardco also sees recognition playing a key role in the post-COVID hybrid workplace. "Some companies are even using Awardco to incentivize return-to-office efforts," Sonnenberg noted. "But no matter where employees work, recognition builds connection and belonging. That’s universal."
The company employs nearly 600 people, primarily at its Lindon headquarters, with additional offices in St. George and London—and plans to expand further. "We opened our London office last year because our customers needed us on their side of the pond," said Sonnenberg. "We’re also exploring an East Coast office to continue attracting top talent."
Awardco plans to continue hiring across engineering, product, and customer success teams while growing its annual RCGNZ Summit in Park City—a premier HR tech event that reflects its increasing industry influence.
The new capital will fuel product innovation and international expansion, particularly in the EMEA region, where its London office is already driving rapid growth. The investment will also fund expanded AI capabilities, enhanced HRIS integrations, and greater automation to deepen employee insights and improve platform usability.
"Our mission isn’t changing—it’s expanding," said Tanner Runia, President and co-founder. "Guided by the evolving needs of our customers, we’re bringing recognition into new areas that deliver even greater strategic value."
Reflecting on Awardco’s founding, Sonnenberg recalled his roots in the traditional recognition industry. "My dad worked in employee recognition—lapel pins, gold watches, five-year plaques. I knew the younger generation wanted something different."
Combining his computer science background with that insight, Sonnenberg and his cousin built an API integration with Amazon to create a modern, scalable rewards marketplace. The company has since added experiences, travel, gift cards, and charitable options.
"It turns out a sincere ‘thank you’ is more powerful than we thought," Sonnenberg said. "Eighty percent of the recognitions on our platform are non-monetary. People crave appreciation—and organizations are finally starting to measure it."
"We built great software," he added, "but more importantly, we're helping people look for the good in each other. That creates a behavior that extends beyond the workplace—it reaches into the home."
With this latest round, Awardco is poised to redefine the future of employee experience—where recognition drives connection, culture, and measurable business results.
For more information, visit www.awardco.com or view video below: