In 2021, the HR tech field grew exponentially due to VC funding. After the pandemic, companies in the industry supported employers with their virtual hiring process, focussing on diversity and remote work.
Last year was a golden moment for the HR tech industry. According to PitchBook, investors moved $12.3 billion in global HR tech startups (809 deals) – 3.6 times more than 2020. And in 2022, four giant deals ($1.4 billion in venture investment) are already in place.
Most of this venture capital investment for the HR tech industry focuses on diversity and remote work. Here are some tech startups implementing tools and strategies for a remote workforce:
- PayFit is a payroll software developer. In January, the company raised €254 million ($287) Series E as part of the EU’s first unicorn.
- Darwinbox provides an HR tech platform for recruiting, virtual onboarding, and remote workforce management. The Indian company reached a $72 million TCV-led round.
- Alva Labs developed a data-driven candidate assessment tool. So, the software supports recruiters during the screening process by comparing applicants objectively. Last week, the Stockholm-based company collected €11.7 million with VNV Global.
- SeekOut is another startup focussing on diversity and remote work. , With $115 million Series C by Tiger Global, the Seattle-area company support companies in setting diversity hiring goals; finding underrepresented candidates; and removing unconscious bias from the process.
As we can see from 2021-22 VC funding, the focus is on remote work and diversity. Indeed, a remote workforce allows finding new hiring strategies focussing on inclusion and diversity.