I was completely baffled by this global Unicorn overview that ignores HR Tech. And it gets even more confusing when you look at the details. First, it’s a great infographic, and it shows all the current Unicorns (which is a startup with a valuation of over $1B).
When you look closely, most HR Tech Unicorns are classified as Internet Software & Services. They fall in the same category as Canva (design) and Strava (fitness tracker). It doesn’t get more generic than that. Every Unicorn on this list is an internet business.
But even more curious, SmartHR (JP) and Gusto (US), that offer local HR and payroll solutions, are in the Fintech category. I have written about Fintechs coming for payroll, but it seems it’s now the other way round: when you offer a payroll service, you are Fintech.
Or maybe not: while Oyster and Remote qualify as Fintech, Papaya Global is Internet Software & Services. All three offer a service to hire and pay employees anywhere. So does Velocity Global, a unicorn that doesn’t even appear on the list. Pave, a compensation service, isn’t Fintech either. Are you just as confused as I am?
Degreed is the only B2B Platform in EdTech, where all other unicorns sell directly to consumers. And why is Employment Hero nowhere to be found?
There are more than 40 HR Tech unicorns, and more than 50 when you add hiring solutions. Compare that to Travel (14), Consumer Retail and Edtech (30 each). So I say HR Tech deserves a category of its own, CB Insights!
(Thank you to Alex Johnson for sharing the image in his awesome Fintech Takes newsletter.)