As companies rethink their hiring practices and the stakes rise around workforce productivity, we look at the most active VC investors in HR tech and where they’ve placed recent bets.
HR tech has seen a spike in funding activity in recent years as more startups offering next-gen software look to transform traditionally manual processes.
Funding to the HR tech space reached a new high last year with $6.7B invested. However, the pandemic has led to a dramatic pullback so far in 2020. Q1’20 saw a 31% drop in deals and a 49% decline in funding compared to Q4’19. With many companies currently focused on cost-cutting and layoffs, HR tech momentum has slowed.