SlideShare a Scribd company logo
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 equal
Choose your journey
Reward
Risk
Better
execution
Adaptation
Disruptive
platform
Disruptive
product
Deliver a solution…..
…..not just a product
Keep it simple…..stupid
There’s more to life than
subscription revenues

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