HR Tech

VC Perspective

HR software market now worth $15bn….

Highly fragmented market with a clear tendency towards

consolidation

more M&A to follow

…with significant growth potential

Capital Markets showing traction

Workday market cap = 15.7B

LinkedIn market cap = 26.7B

Cornerstone On Demand = 1.73B USD

Portfolio of HRTech companies over performs NASDAQ for few years in a row

Strong M&A in tier 1 market…

• Oracle buys Taleo for 1.9B USD

• IBM acquires Kenexa for 1.3B USD

• SAP acquired Success Factors for 3.7B USD

• SAP acquires Fieldglass

Big names .. you have heard about those! And investors did as well.

…and in mid tier

• WorkDay acquires Identified

• LinkedIn acquires Bright

• Monster acquires TalentBin

• Monster acquires Gozaik

• Yahoo acquires Vizify

• CareerBuilder acquires BroadBean

Etc.. You know better

How many of those were successful?

Investment $$’s are increasing….

$2.3bn invested

since 2009

…and accelerating

HR Technology is red hot

Five considerations when

building an HR Tech startup

The realities of HR tech investors

• No $bn exits!

• Trade sale (or failure) most likely exit

HR?

What?

Not all startups are equalChoose your journey

Rew

ard

Risk

Better execution

Adaptation

Disruptive platform

Disruptive product

Deliver a solution…..…..not just a product

Keep it simple…..stupid

There’s more to life thansubscription revenues