April 11, 2019 – Tel Aviv-based HR tech platform Hibob has secured $20 million in funding from existing investors Bessemer Venture Partners, Battery Ventures, Eight Roads, Arbor Ventures and Presidio Ventures. Supporting the company’s mission to transform HR to reflect the changing nature of the workplace and workforce, the expanded investments will drive the next phase of Hibob’s growth, help to establish it as the platform of choice for fast growth companies, and accelerate its penetration in the U.S. and across Europe.
Since its founding in late 2015, Hibob has achieved 460 percent year-over-year growth and now boasts hundreds of customers, including Monzo, Etoro, Happy Socks, Ironsource, Receipt Bank, Fiverr and Karmarama, as well as strategic platform integrations with Slack, Workable, GreenHouse, Aviva, Canada Life and UNAM. Following a seed round of $7.5 million and a series A of $17.5 million, the total investment in Hibob now sits at $45 million in just three years.
The nature of the workplace experience is rapidly evolving, and the HR tech market is in a rapid growth phase and is expected to reach $22.5 billion by 2022. The proliferation of this technology goes beyond the need for employees and HR teams to better navigate administrative tasks like payroll processes, performance reviews and holiday requests.
“There is a paradigm shift in the way people work, and HR is shifting from a system of records and resources to a way to manage relationships and productivity,” said Ronni Zehavi, co-founder and CEO of Hibob. “Companies need the right tools to develop and maintain top talent as they grow from hundreds of employees to thousands. We are pleased that our investors understand the great need in this market and know that we are poised to deliver the most innovative and intuitive product that will allow businesses to flourish in the rapidly evolving world of work.”
“The rapid emergence of the workplace of the future is led by a new generation of digital natives that will dominate the global economy in the coming years,” Mr. Zehavi said. “This generation wants to work for fast-growing companies doing meaningful things, disrupting the norm, challenging authority and challenging themselves to grow and develop in a nurturing culture. Fast-growing companies understand this reality and are prepared to invest in HR technology and innovation more than ever before.”
Said Mr. Zehavi: “Great people are in great demand – we are in a ‘quitting economy’ – and our platform, holistic, data-driven and personalized to the ultimate human level while driving business growth.”
“Recent customer wins and high levels of growth mean that this is the right time to be injecting additional capital into Hibob,” said Adam Fisher, partner, Bessemer Ventures. “The company is a great example of an Israeli start-up that is focused, ambitious and demonstrates real knowledge of the future workplace – meaning further expansion, particularly in the U.S. market, makes perfect sense.”
Hibob provides fast-growing companies with the HR capabilities they need to attract, retain and grow today’s workforce. The platform streamlines administrative tasks and improves employees’ experiences with intuitive design and tools that provide company decision-makers with valuable insights that help retain and grow today’s diverse and demanding workforce.
Investors are pouring money into recruiting solutions businesses, especially those with an AI component. Here’s a look at some recent funding deals secured by these companies from the Hunt Scanlon Media archives:
Jobcase, a self-described open access platform for job seekers and employers, has secured $100 million in a growth equity round led by Providence Strategic Growth. This brings the Boston start-up’s total funds raised to $118.9 million. The new funding will accelerate product development and services for Jobcasers (Jobcase members) via internal growth and/or strategic acquisitions.
San Francisco-headquartered human cloud platform Jyve secured $35 million in funding led by SignalFire and joined by Crosscut Ventures and Ridge Ventures. Jyve’s platform, which it calls “Skills-as-a-Service,” uses machine learning to source and identify certified, skilled talent. Jyve’s focus is on providing companies with flexible labor.
CareerArc, a global leader in HR technology, raised a $30 million growth equity round led by PeakEquity Partners. This investment and the support of the team at PeakEquity Partners should allow us to accelerate our growth, expand product offerings and strengthen our market position,” said Robin Richards, co-founder and CEO of CareerArc.
France-based Talentsoft, a cloud-based human resource software solutions provider for talent management learning, has raised $50 million in a financing round which it says will boost continued growth via innovation and international market expansion. Talentsoft is focused on optimizing the employee experience while taking…
pymetrics, an enterprise SaaS company that uses neuroscience and AI to make the recruitment process more effective, has closed a $40 million Series B funding round. pymetrics utilizes neuroscience and AI to assess job applicants across a range of cognitive, social and emotional traits and algorithmically recommend the best-suited candidates to companies.
Scout Exchange, a recruitment marketplace connecting employers with specialized recruiters, has received $100 million in funding from TRI Ventures. The funding will accelerate growth of Scout’s recruitment marketplace, which has been adopted by hundreds of employers including 50 Fortune 500 companies and thousands of specialty recruiters.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media