HR tech

People managers’ not-so-secret weapon

Last updated: 17 Nov 2022

Market 101

The “war for talent”, the “Great Resignation”, a wave of layoffs in a jittery economy — HR departments have had plenty to worry about in recent years. Competing for coveted talent while making sure existing employees don’t leave for greener pastures was hard enough before the pandemic, which made working life virtually borderless, and for many reaffirmed the importance of work-life balance. Lately, HR managers have needed to handle a delicate task unknown to most of the tech sector for over a decade: mass layoffs.

Stepping in to provide support at this crucial time is a growing wave of startups focusing on everything from performance analytics to recruiting software to payroll management, with many of them targeting the giant — but underserved — European SME market. Going forward, their biggest challenge won’t be a lack of demand for HR tech, but an increasingly crowded sector in which they must stand out from the pack.

Early stage market map

Key facts

$48.9bn

projected market size by 20271

24.4%

the share of employees aged 20-64 who regularly work from home in the EU2

$310

a company’s average HR tech spend per employee3

Startups tracked by Sifted

Sifted take

The pandemic and the advent of the remote working world undoubtedly elevated the HR manager and increased their spending power. But how many bits of HR tech do we really need? It’s a question CFOs are surely askingas budgets start to tighten. And with the HR tech sector itself quickly crowding up, startups may now need to double down on the services that their clients deem the most essential.

Rising stars

Metaview

Hiring

Screening & interviewing

Total funding

€7,600,000

London, United Kingdom
2018

Backed by investors like Seedcamp and Village Global, Metaview provides analytics to let companies improve their interviewing processes. Its cofounders previously worked for the likes of Uber, Palantir and Morgan Stanley.

Round

Seed

Valuation

Undisclosed


Date

2021

Size

€6,000,000

Coverflex

Employee benefits

Total funding

€5,000,000

Braga, Portugal
2019

Software to help companies offer flexible benefits to employees. Founder Miguel Santo Amaro previously cofounded student accommodation startup UniPlaces, which employs over 130 people.

Round

Pre-seed

Valuation

11000000


Date

2021

Size

€5,000,000

Walking on Earth (WONE)

Retention

Wellbeing

Total funding

€4,600,000

London, United Kingdom
2020

Helps companies assess employee stress levels and creates bespoke programmes to help manage this stress better. The startup was founded by BenevolentAI’s former VP of strategy and is backed by Octopus Ventures and Notion Capital.

Round

Seed

Valuation

Undisclosed


Date

2021

Size

€4,100,000

Early stage startups to watch

Applied

London, United Kingdom
2016
Seed

4.9m

3m

-

CandidateX

London, United Kingdom
2021
Grant

780k

500k

-

Cosmos Video

London, United Kingdom
2020
Pre-seed

2.2m

2.2m

-

Coverflex

Braga, Portugal
2019
Pre-seed

5m

5m

11m

Culture Shift

Manchester, United Kingdom
2018
Seed

3.3m

1.8m

-

Develop Diverse

Copenhagen, Denmark
2017
Seed

2.5m

2.5m

-

ehlo

London, United Kingdom
2020
Angel

600k

600k

-

Equalture

Rotterdam, Netherlands
2019
Seed

4.4m

2.8m

-

Feats

Copenhagen, Denmark
2018
Seed

2.6m

2m

-

Glue

Helsinki, Finland
2018
Seed

5m

3.5m

-

HappyPal

Paris, France
2020
Seed

4m

2m

-

InChorus

London, United Kingdom
2019
Angel

397k

340k

-

JOBBY

Milan - London, Italy - UK
2016
Seed

3.3m

2m

-

JUST KNOCK

Milan, Italy
2014
Angel

200k

200k

2m

Lifeed

Milan, Italy
2015
Seed

1.5m

1.5m

4m

Metaview

London, United Kingdom
2018
Seed

7.6m

6m

-

Metta Space

MADRID, SPAIN
2021
Angel

300k

120k

3m

Mooncamp

Cologne, Germany
2020
Bootstrapped

-

-

-

Moonstar

London, United Kingdom
2020
Bootstrapped

-

-

-

PayCaptain

London, United Kingdom
2020
Seed

1m

700k

5.6m

Peero

Riga, Latvia
2020
Bootstrapped

400k

400k

-

PESCHECK®

Enschede, Netherlands
2018
Seed

800k

800k

-

Pirical

London, United Kingdom
2015
Bootstrapped

-

-

-

QPage

Remote London, United Kingdom
2020
Pre-seed

240k

200k

-

Quan

The Hague, the Netherlands, Netherlands
2020
Seed

1.5m

1.5m

-

Ratecard

Amsterdam, Netherlands
2018
Bootstrapped

-

-

-

RecruitLab

Tallinn, Estonia
2020
Seed

2.2m

1.9m

-

Relocate.me

Tallinn, Estonia
2017
Bootstrapped

-

-

-

Teemyco

Stockholm, Sverige
2019
Seed

3.5m

2.6m

-

The Hub

Copenhagen, Denmark
2015
Bootstrapped

-

-

-

Walking on Earth (WONE)

London, United Kingdom
2020
Seed

4.6m

4.1m

-

Wurkr

London, United Kingdom
2018
Angel

1.4m

25k

-

Your FLOCK

Manchester, United Kingdom
2018
Pre-seed

430k

180k

1.8m

YourCampus

Amsterdam, Netherlands
2021
Seed

3.2m

2.7m

-

Europe’s success stories

Who early stage startups are up against

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

One of the highest valued startups in Europe, it offers an all-in-one HR platform for startups and SMEs

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

Payroll management system for SMEs with up to 500 employees

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

HR software that takes care of recruitment, retention, operations, finance and legal aspects for more than 7,000 companies

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