Human resources technology is a high-interest area for venture capital investment. Using CB Insights’ Mosaic algorithm, which combines public data and predictive analytics to assess the health of private companies, we identified some of the hottest HR tech startups.
HR tech companies offer powerful software tools to address some of businesses’ most aggravating problems: compliance, payroll, benefits, recruiting, and talent management. Below is our list of 13 prominent HR tech companies with high Mosaic scores, along with recent headlines about news, financings, and partnerships:
- Heading up our list is popular job-listing website Glassdoor, which provides job-seekers with in-depth information about prospective employers, including potential interview questions, pay, and workplace culture. Glassdoor most recently received a $70M growth equity round in January from investors including Google Capital and Tiger Global Management.
- Second on the list is cloud-based HR automation platform Zenefits, which raised a $500M funding round at a $4.5B valuation in May from Founders Fund, Khosla Ventures, and TPG Growth, among others.
- Third is HackerRank, a technical recruiting and interviewing platform that is aiming to be the “default resume” for developers. HackerRank most recently raised a second tranche of Series B funding which brought the total Series B funding from Battery Ventures, Khosla Ventures, and Recruit Strategic Partners to $16.7M.
The top startups in HR Tech make products that span one or more of these three subcategories: operations management, recruiting, and talent management.
- Operations management: Companies like Zenefits provide services that allow business owners to automate payroll, compliance, benefits, and insurance processes.
- Talent management: Companies like Namely, HireVue, and People Matter offer companies digital tools to monitor employee progress, provide real-time feedback, and increase the effectiveness of the review process.
- Recruiting: Companies like Glassdoor, Greenhouse, and Jobvite help companies source and narrow down candidates by providing centralized candidate databases, lines of communication to potential candidates, candidate relationship-management software, online screening services, and automated interviews.
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This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity