hr tech - the investor perspective
TRANSCRIPT
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