After a tumultuous 2022, funding and development of HR technologies proved to be off to a slow start in 2023. In total, there were 123 major announcements (those with at least $1 million in funding) throughout the quarter, down from the 155 in the fourth quarter of 2022 and exactly one-half as many as the first quarter of 2022, which had 246 major announcements.
Despite these lower numbers, the investments were comparatively larger than in recent quarters. The average investment in the first quarter of 2023 was $35 million, a drastic improvement from the $19.4 million in the fourth quarter and slightly up from 2022’s average of $34.5 million. The largest areas of investment were Payroll technology with $906.3 million and Recruitment technology with $762.3 million.
Read the full report to see which HR technologies are being prioritized as 2023 begins.