Palo Alto – May 22, 2024 – Woodside Capital Partners (WCP) is pleased to share our HR Tech Market Update – Q1 2024, authored by Senior Managing Director Ron Heller and Senior Analyst Alex Casey.
Key takeaways from the report:
- M&A: Activity increased with 31 M&A transactions in Q1 from 25 transactions in Q4 23, but still down from 46 in Q2 ‘23. Active sectors include Employee Engagement, Compliance, and Talent Analytics.
- Notable Transactions:
- Perkbox (acquired by Great Hill for ~$162M)
- BenefitHub (acquired by Inverness Graham, had raised $14M)
- Certipay (acquired by VensureHR/Stone Point)
- Orgnostic (acquired by CultureAmp, had raised ~$7M)
- Notable Transactions:
- Financings: VC activity increased in Q1 with 69 deals, a significant increase from 39 in Q4 ‘23, which represents positive news for companies seeking financing later this year.
- Macro: While inflation has moderated, it remains above Fed target levels. Unemployment remains low, corporate earnings are strong, and solid 2024 growth seems likely. As a result, the likelihood of significant rate cuts later this year has declined. Equity markets are generally strong, while debt markets have stabilized. As evidenced by recently announced EV tariffs and student loan forgiveness, Biden seems likely to continue to engineer policies to bolster his campaign.
- Strongest HR Tech Categories/Drivers:
- Generative AI (affects many areas of HR Tech)
- Automation (especially in recruiting)
- Data Integration (across disparate systems of record)
- Hybrid Employment Platforms (remote and in-office)
- Upskilling/Learning & Development
- Recruiting for Vertical Markets (e.g., nurses and engineers)
- Contractor/Gig Employee Systems
- Employee Engagement
- Payroll/HCM
- The Roles and Impact of AI in HR – Key Themes, Impact and Considerations
- Automation of Repetitive Tasks
- Bias Mitigation in Decision Making
- Personalization of Learning and Development
- Data-Driven Insights into Employee Sentiment
- Predictive Workforce Analytics
- Improved Employee Self-Service
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. More about Woodside Capital Partners here.
Questions? Contact Ron Heller, Senior Managing Director, Woodside Capital Partners at [email protected].