August 15, 2017 – Investment dollars continue to pour into new technology designed to change the talent management game.
Personio, the German HR management and recruiting platform, has raised $12 million (€10.5 million) in a series A round from investor Northzone.
With the influx of new money, Personio is looking to push its software-as-a-service (SaaS) product in an effort to become the leader in the human resources software market for small and mid-sized companies across Europe.
Northzone is an experienced investor that has backed a number of breakout companies, including Spotify, Klarna and Trustpilot. In funding Personio, the venture capital group is now seen as broadening its reach into HR technology. Existing investors Global Founders Capital and Picus Capital are also participating in the new investment round.
“This investment guarantees a solid growth strategy,” said Hanno Renner, Personio founder and CEO. “We still focus on the enhancement of our product to provide our present and future clients the best possible solution.” Currently, more than 400 clients use Personio to manage their HR and recruiting processes and get a better overview of their personnel.
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“With its innovative, one-stop solution for talent acquisition, HR administration, and employee retention, Personio is a game changer in the HR solutions market for small and medium enterprises in Europe,” said Michiel Kotting, partner at Northzone.
“In a market that has a global value of $14 billion, HR teams of SMEs are still served by outdated and disparate systems. Personio changes all of that. We have been hugely impressed with what Hanno and the team have achieved since their launch in 2015, and believe they are in a strong position to build the category leadership in the space.”
Personio plans to incorporate recruiting, administration and development of staff within its HR operating system. Customers from 30 countries already use its service, said the company, and it is now focused on expanding in Europe.
“The target of Personio is to be developing the central platform for human resources management that is bundling all digital HR processes, such as payroll accounting or continuous feedback within one software solution,” said Mr. Renner. Ultimately HR employees “will be spending less time with administrative tasks and thereby can focus more on valuable personnel work.”
Personio is a holistic SaaS solution that enables managing all HR processes within one software. Among its customers are newer tech companies, such as Thermondo, orderbird and Service Partner One, as well as established mid-sized enterprises like FischerAppelt, Pixum and the EQS Group.
Last year, Personio raised a €2 million seed-round from Global Founders Capital, Picus Capital, the Stylight Founders and other individual business angels. The funds were used to increase development and support capacities.
Other investors continue to pour money into HR recruiting solutions. Here’s a look at some recent funding deals secured by these companies from the Hunt Scanlon Media archives:
Workey, the next-gen AI solution for career development and recruitment, has launched in the U.S. after closing an $8 million Series “A” funding round, led by PICO Partners and Magma VC. The funding was immediately put to use, with Workey opening an office in New York City and hiring for that location already underway.
YouEarnedIt, an SaaS company that is attempting to alter how companies drive employee engagement and bottom line performance metrics, recently closed $6.5 million in funding. YouEarnedIt can consolidate employee engagement initiatives into one, easy to use mobile platform.
Talent acquisition platform SmartRecruiters recently raised $30 million in series C financing, led by Insight Venture Partners. The company plans to leverage the additional capital to sustain its rapid growth, accelerate its global market presence, and continue to invest in its product footprint to serve the needs of the more than 5,000 enterprise companies.
Reflektive, an HR analytics and employee engagement platform, has secured $13 million in series A funding led by Lightspeed Venture Partners. Reflektive will use the new funding to accelerate development of its platform, enhance customer success and hire across all departments to support its mission to revolutionize performance management.
Glassdoor, the job and recruiting marketplace, closed a $40 million investment round recently, led by funds and accounts advised by T. Rowe Price Associates. The financing will support Glassdoor’s continued growth and investments in product, marketing, and people around the globe, according to internal sources at the company.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Will Schatz, Managing Editor – Hunt Scanlon Media