We dig into HR technology from an employer's perspective to find emerging sectors and to see where the industry is headed next.
As the modern HR department becomes increasingly digitized, the world of HR tech startups is growing substantially.
The evolving space has sparked a new generation of HR tech companies, including startups focused on leveraging artificial intelligence to enrich processes like talent acquisition, talent management, and employee engagement.
Other key developments in the space include a spike in HR tech companies focused on the gig economy, as well as an increasing push towards personalizing benefits.
With these new sub-sectors emerging, the HR tech space has also seen a resurgence in private investment.
Following a peak in investment dollars in 2015, funding to private HR tech companies fell in the following two years. But in 2018 YTD, the sector has seen 33 deals accounting for $642M — making Q1’18 the second highest-funded quarter ever, after Q2’15.
Projecting current numbers out for the full year would yield $2.9B invested across 146 deals in 2018. For reference, that would be a 51% increase in deals and a 138% increase in dollars raised compared to 2017.