Palo Alto – April 11, 2023 – Woodside Capital Partners (WCP) is pleased to share our HR Tech Q1 2023 Update, authored by Managing Director Ron Heller and Analysts Alex Casey and Royce Wang.
Key takeaways from the report:
- M&A: continues to be active, although completed transactions have slowed markedly over the past five quarters. In 2022, 60+ transactions per quarter closed, compared to ~40 in Q1 2023. Active sectors include Recruiting, Employee Engagement, L&D, and HCM.
- Financing: VC activity has also dropped significantly since early 2022, with the number of investments falling from 474 in Q1 2022 to 226 in Q1 2023.
- Macro: despite interest rates rising and growth slowing, unemployment remains low while open positions are high. As a result, competition for job seekers remains high, driving investments in recruiting, particularly in the sectors of the economy rebounding from COVID-19.
- Major HR Tech Dynamics:
— Generative AI
— Automation
— Data Integration across Disparate Systems
— Hybrid Support (remote and in-office)
— Upskilling/L&D
— Diversity, Equality and Inclusion (DEI)
— Contractor/Part-time Employee Systems
— Internal Talent Marketplaces
You can access the full report here:
Woodside Capital Partners is one of the leading corporate finance advisory firms for tech companies in M&A and financings in the $30M –$500M segment. The firm has worked with some of the best entrepreneurs and investors since 2001, providing ultra-personalized service to select clients. Our team has global vision and reach, and has completed hundreds of successful engagements. We have deep industry knowledge and extensive domain experience in the following sectors: Autonomous Vehicles and ADAS, Computer Vision, Artificial Intelligence, CloudTech, Enterprise Software, Information Security, Digital Entertainment & Lifestyle, Health Tech, Internet of Things, Networking / Infrastructure, Robotics, Semiconductors, Batteries, and Energy Storage. Woodside Capital Partners is a specialist in cross-border transactions, with extensive relationships among venture capitalists, private equity investors, and corporate executives from global 1000 companies.
Questions? Contact Ron Heller, Managing Director, Woodside Capital Partners at [email protected].