I didn’t expect that the investment pace of last year could continue, but in the first six months of 2022 companies already raised 63% of the total FY2021 funding.
I registered exactly $7,720,899,205 across 254 rounds. 13 companies did not disclose the amount. There were more VCs per deal than last year, and more than 95% only participated in one deal: a lot of new investors joined the HR Tech industry. We’re also seeing a considerable number of angels. Tiger Global remains the no 1 investor in the space in number of deal participations.
The average investment was $30M, and that is lower than in 2021 ($38M). There were fewer large series C-E, and the initial investments for series A are lower too.
Still, 9 new unicorns were created, of which 5 in the HCM & Pay category: Payfit, Seekout, Darwinbox, Employment Hero, Staffbase, Oyster HR, iCIMS, Velocity Global and Pave.
And you can find my thoughts on HR Tech Unicorns
in a separate post, including the full list.
The investments cover the whole spectrum of HR services, but with $3.5B, HCM Suites & Pay is once again the largest category, both in value and number of deals (67). The largest subcategory are solutions to support the Global Workforce ($1.3B), followed by Full Suite HCM ($848M) and Payroll ($376M) while Earned Wage Access solutions came in fourth and received $219M in funding.