Sam Blum has written a great piece on how investing in HR Tech might change. Get ready to witness the HR tech revolution! Since 2017, venture capitalists have been splashing the cash, with a whopping $16.8bn invested in 2021 alone.
With HR ripe for disruption, start-ups are being backed left, right and center to revolutionize the sector from recruitment to employee credentialing. The recent focus on diversity, equity and inclusion, and hybrid work has fueled the influx of funding.
But wait, there's more! Brace yourself for the next wave of innovation, with Web3, blockchain and metaverse technologies set to take the HR world by storm. Start-ups are already developing cutting-edge HR tools based on these emerging technologies, but experts warn that the developments are still in their early stages.
You can find key takeaways below:
- Venture capitalists are investing more in start-ups focused on HR technology to reinvent HR for the future of work.
- HR technology has not historically received high levels of investment because the technical aspects, such as payroll, compliance, and onboarding, have not been associated with great innovation.
- VCs' investment in HR tech started before the pandemic but accelerated as remote work became normalized.
- HR's heightened emphasis on DE&I initiatives and hybrid work has also increased the amount of investment in HR tech.
- Experts predict the next wave of HR tech start-ups will come from the Web3, metaverse, blockchain world, but it is still nascent.
- Overall, the HR tech space is generating intense interest from VCs, and 2021 was a banner year for the future-of-work industry, with $16.8 billion invested worldwide.
- HR could fit conveniently into the new world of Web3, which hinges on decentralization, in which companies will build their enterprises on blockchain technology.
- Some HR tech could look to Web3 to revamp the way it handles employee credentialing.
- The new wave is forming, and not yet flooding the HR field.
Full Story: HERE (HR-brew)
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