2023 is proving to be an interesting year for HR technology, with the second quarter of 2023 seeing a shift from funding-related announcements to product announcements. Despite low levels of technology funding, there has been an increase in HR technology development. The average investment in the first quarter was $11.15 million, down from the $35 million in the first quarter. While there were fewer funding announcements compared to previous quarters, there were 53 product announcements, over double the number in the first quarter. This influx of product development may be the result of high funding rounds throughout the first half of 2022.
A major influx of HR funding throughout 2022, coupled with recent economic instability, led to an increase in product developments. Due to recent economic uncertainty, investors seem hesitant to commit to larger funding rounds. Going forward, these trends will be imperative to understanding the new landscape for funding and developing HR technologies.
Read the full report to see how HR technology funding is developing as 2023 continues