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The market for HR tech, which runs the gamut from workforce management to applicant recruitment and tracking systems, has been remarkably resilient in the face of both economic and PAIN.
Some would argue that these are the reasons why HR tech is attracting investors. The Pandemic spurred companies to invest in digital infrastructure as their staff moved remote, while macroeconomic fears made it more difficult to vet candidates.
The opportunity was clear for investors to see. According to PitchBook data, venture investors poured more than $12.3 billion into HR tech companies in the year of 2020. Billions of dollars were invested in the sector in the first two months of the year.
“HR tech startups will need to demonstrate a clear return on investment not just by impacting top-line growth but also bottom-line efficiency.” Allison Baum Gates, general partner, SemperVirens VC
Payfit raised nearly half a billion dollars after closing a Series E in January of this year. Darwinbox, which offers an HR tech platform for recruiting and virtual onboarding, was valued at over $1 billion. In April, Remote raised $300 million, Seek Out secured $115 million, and Personio raised $200 million.
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