For the second quarter of 2021, we have tracked 60+ deals accruing to an investment of over $3+ bn dollars, across 8 main HR categories:
- Talent Acquisition
- Talent Analytics
- Talent Development
- Talent Engagement
- Talent Management
- Talent Operations
- Total Rewards
The top 3 trending categories according to our preliminary research are:
- Talent Engagement continues to remain one of the most trending categories in the HRTech space. As companies emerge from the COVID shutdown, they have an opportunity to refocus, reframe, reimagine, refresh, and relearn how they’ve always done business. By taking a whole-person, human-centred approach to everything they do, they can create and instil a culture of connection, increase productivity and build a more resilient workforce for competitive advantage. The focus is not just about Employees but the entire Workforce comprising Part-Timers, Contractors, Gig Workforce, Secondments, Interns, Potential Employees and Returning Alumni.
There is an increasing focus on Performance Management systems, Leveraging employee collaboration to improve employee experience and focusing on employee Mental Health and creating inclusive workplaces.
- Talent Acquisition- With hybrid work becoming normal, the focus continues to be on the freelance market & hourly workers, background screening is driving the interest for this segment as well as Applicant Tracking Systems. (Read: Top 10 HRTech trends for 2021)
- Talent Operations– As businesses begin to digitise their HR processes, they are seeking cloud-based solutions to replace outdated or manual systems(for example payroll, workforce management), as a result, investment in this sector is growing.
With SERIES D & C funding cumulatively contributing to over 47% of the total invested dollars, it indicates the focused interest of investors on mature and proven solutions. The largest investment for the second quarter of 2021 was $300 M into Workrise, a leading Workforce Management Platform.