HR Tech Market Report (Part 2)

If you missed the part one of this report, you can find it here.

Investments into HR SaaS technology startups have exceeded US$10bn in the past 10 years, with over 2,700 investment rounds and 377 successful exits in total. Funding rounds and amounts have increased at a fast pace in the past five years, with the number of deals growing by c. 25% p.a. and funding growing by over 35% p.a. on average. On average, HR SaaS seed rounds remain slightly below overall SaaS seed rounds, but have increased steadily in the past three years, exceeding US$1mn on average in 2017. HR SaaS exits have almost doubled in the past three years, but IPOs remain rare and the majority of HR SaaS M&A deals in 2016-2018Q1 were <US$100mn transactions. Over half of the HR tech companies acquired in this period had revenues under US$25mn and less than 50 employees. HR tech M&A deal volume and value were driven primarily by acquisitions in the US. In Europe, over 80% of organizations are facing challenges in increasing performance and profitability, increasing organizational agility, improving customer satisfaction, and reducing operational costs. Most European HR organizations are focused on leadership development, employee engagement, being a strategic business partner, and facilitating digital transformation.

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