Want to hear something amazing?
HR Tech companies raised more than 12 billion dollars in 2021. It’s extraordinary, especially when you realize it’s more than 2019 and 2020 put together!
And with 21 new unicorns, we can safely conclude that 2021 was HR Tech’s best year ever.
I registered $12,275,512,500 across 330 VC deals. It is even more impressive because I use a restrictive definition of HR Tech, that excludes so-called worktech, job boards, gig platforms etc.
There were 308 companies involved, and 22 of them raised money twice! The investments cover the whole spectrum of HR services, but with $4.6B raised, HCM Suites & Pay solutions stand out as the clear winners.
With the labor shortages in mind, you won’t be surprised to hear that Talent Management and Talent Acquisition are next in line, but with a surprising twist!
HR Tech focus
All these companies create SaaS solutions with subscription revenue models: modern HR only runs in the cloud. Artificial intelligence, machine learning, automation and analytics are must-have components. And with best-of-breed as the dominant strategy, young API vendors are looking to disrupt the landscape and behave like fintechs.
The outcomes of these investments will come to market in 2022 and I’m excited to see what these companies will deliver.
You can find more details in the attached report, including geographic spread, deal values and break downs.
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