Year-round, new technologies are developed and funded within the HR space. This quarterly report provides monthly updates to track movement within the HR technology sector and the innovation they bring. For a thriving global workforce, HR technology announcements should reflect labor market needs.

Key Takeaways:

• In the first quarter of 2026, worldwide venture capital activity hit over $330 billion, more than doubling funding from the last quarter of 2025.
• HR technology received 86 total announcements, 80% from the US alone as activity from the APAC and Latin America regions waned.
• Total investment in HR technologies was up. Overall, there were three funding announcements over $100 million. The largest funding round was for Vensure Employer Solutions, a US-based workforce solutions and benefits provider.

2026 Q1 Venture Capital Activity and HR Technology Investments

Global funding hit over $330 billion, primarily focusing on AI-based startups and US-based companies. US-based companies received over $267 billion in funding as ten companies raised over $2 billion each and there were four megadeals, all over $10 billion. Although this was the best quarter for funding since 2021, investors will be increasingly cautious following geopolitical tension.

In HR, venture capital activity grew to nearly $1.4 billion. Of the 86 major HR technology announcements, 33 were for products, 29 for M&A activity, and 24 total funding rounds. Additionally, 66 of the announcements were from US-based companies, six from EMEA, and three from both APAC and Canada. Activity in Silicon Valley boomed, though activity in London stagnated. Reflecting an especially idle labor market, activity in talent acquisition and core HR functions expanded.

Read the full report to learn more about recent hR products, investment rounds, and movement within HR technology throughout Q1’26, along with charts and a look ahead to the rest of 2026.