Seattle-based Mystery pivoted during the pandemic to a B2B event-facilitation model intended to boost employee engagement and morale at companies. The startup’s own morale is on the upswing now following a new funding round of $18.5 million and a valuation of $100 million, announced Thursday.
Mystery started in 2018 as a dating service of sorts, helping couples get out on the town for dinner, drinks, entertainment and transportation without having to plan any of it themselves. The company’s first pivot came as COVID-19 hit and people stopped going out. Mystery tried a service called “Night In” to bring the fun home.
Now Mystery is helping companies such as Amazon, Starbucks, Convoy, Microsoft and others, whose employees have been stuck on Zoom calls for two years, surprise and delight their workers with interesting virtual events. Last September, Mystery referred to its new model as “morale as a service.”
Virtual experience categories include artistic events, classes, games, relaxing events, tastings, and performances.
Not all of the events are secret, but Mystery strongly encourages them to be for a number of reasons. Mystery believes that the best experiences are those that push people outside of their comfort zone. Expectations are also out the window when a team has no idea what’s in store, attendance improves, and the bonding experience is better.
Mystery uses its technology to handle all the logistics so companies and employees can focus on enjoying the event. Mystery’s software also measures how employees feel after an event.
It appears to be working, as the company reports thousands of teams used the service in 2021.
CEO and co-founder Shane Kovalsky told GeekWire that Mystery started with the idea that technology should make people happier and that the startup has always believed in the power of shared experiences.
“The rise of distributed work has unlocked the ability for many of us to create moments with our family and friends more than ever,” Kovalsky said. “At the same time, it has left us isolated from the people we spend the majority of our waking hours with, now behind screens — our colleagues, managers, and leaders at work.”
Kovalsky added that in order to “realize the full potential of distributed work, we need to ensure that work doesn’t devolve into an impersonal and purely transactional dystopia.”
The Series A funding round was led by Greylock Partners. Mystery has raised $22.75 million to date. The company employs 32 people and is currently hiring to try to double that number.
