The market for HR technology, which encompasses everything from recruiting and applicant tracking to employee management, has proven to be extraordinarily resilient in the face of both the pandemic and economic challenges.
Some would argue that it is because of these challenges that investors have shown interest in HR technology and continue to do so. The pandemic drove companies to invest in digital infrastructure as their staff moved remote, while macroeconomic fears upped the pressure on HR teams— some of which had to contend with layoffs among their ranks—to vet candidates carefully.
According to reports, venture capitalists invested more than $12.3 billion in HR software startups in 2021, which is about 3.6 times as much as they did in 2020. That trend continued in 2022, with megadeals ensuring more than $1.4 billion was invested in the sector in the first two months alone.
However, it is important to note that HR Tech startups are not attempting to displace HR professionals; rather, they are providing HR managers with the resources they need to manage a larger, more scattered workforce with higher expectations for what the company will do for them. And it seems that investors agree as well.
In the coming years, the HR Tech space is expected to produce more unicorns than any other industry, making it more than merely the next sunrise sector for startups. Companies are nothing without their people, and HR Tech startups that make employees feel more valued, engaged, and involved will find many customers across the corporate landscape.
In this edition, we aim to provide readers with insights into the innovative HR Tech startups that are taking the industry by storm.
Let us know your thought.
