HR Tech

Step into the forefront of the HR tech evolution. Explore opportunities to grasp and obstacles to overcome within this competitive yet flourishing landscape.

Ride a transformative wave of HR tech

Powered by a fusion of advanced technology and human resources, the HR tech venture capital industry is driving a revolution in how companies line up their workforce, optimize processes, and spark off team’s engagement. And HR tech startups can take advantage of this transformative wave. AI and machine learning, remote work solutions, learning platforms, advanced analytics, etc. – the opportunities are boundless, but so are the challenges.

Grasping a golden chance becomes harder

Integration within existing systems tests patience, as non-compliance may result in fines, lawsuits, and severe reputation damage. Thus, HR tech startups must be ready to pour money into their solution’s alignment with the current HRIS.

Securing personal data is another challenge where the newcomers need to be really careful, as losing users’ trust in case of a data breach is easy, but regaining it will be a Herculean task. Thus…

You need more than a stroke of inspiration

With a substantial track record of fundraising, M&A and growth projects in over 80 industries, including HR tech, at Waveup, we know all the ropes. Check on our HR tech market research to get insights into HR tech funding, the industry’s market size, challenges, etc.

The HR tech industry saw a 60% rise in job postings from 2019-2020.


Approximately 69% of organizations are building integrated systems to analyze workforce data.

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HR tech streamlines HR processes, reducing administrative tasks by up to 70%, thus enabling HR professionals to focus on strategic initiatives.


The adoption of AI-driven HR tech tools is projected to quadruple by 2025, reaching a user base of approximately 3.6 million.


Companies investing in employee well-being tech solutions have reported a 20% decrease in employee turnover rates, highlighting the positive impact on retention.


In 2021, the HR tech venture capital market received a record $12.1B in funding

With the largest deals going to:

  • Talent acquisition
  • Learning and development
  • Workforce management
  • HR analytics
  • Employee engagement

Leading HR tech investors

Write to us to know more


The hardships HR tech startups handle

Navigating the dynamic terrain of HR tech requires agility and creativity to secure HR tech funding, gain customers’ trust, and outrun rivals.

Navigating retro maze

Integrating modern HR tech solutions within the current HR legacy systems resembles a generational clash: without the right approach, they won’t find common ground. Even the most advanced HR technology may underperform if it doesn’t integrate smoothly within an organization’s existing HRIS. Thus, understanding client needs, partnering with industry giants, and crafting seamless APIs become crucial for newcomers wanting to make the mark.

Securing data vaults

Just like individuals entrust their money to the fortress of a bank vault, they place similar faith in safeguarding their personal data. For HR tech startups, earning this trust is paramount. A single slip can not only lead to legal issues but also undermine clients’ trust, causing irreparable damage to the brand. This risk demands new entrants to allocate substantial resources toward encryption, secure cloud storage solutions, and regular staff training.

User adoption quest

Getting users on board with your solution is no walk in the park. It’s common for employees to resist adopting new HR tech systems, having been used to certain ways of working. So it’s not only about designing user-friendly interfaces but also offering extensive training, resources and customer support to organizations that integrate your services.

How we can help

Fundraising advisory

From diligent industry analysis to storytelling and financial forecasts, we’re helping founders crystallize and structure key business fundamentals and translate them into a compelling investment opportunity framed in a winning HR tech pitch deck.

Due diligence and portfolio support

Evaluating potential investments, conducting due diligence, and supporting portfolio companies on their new fundraising rounds.

Established companies
Growth hacking

Discovering market opportunities in the market and developing execution strategies to build actionable and scalable blueprints for growth.


Unlocking your next stage of growth

Waveup is a leading global advisory empowering companies to fuel growth, attract investments, and secure strategic partnerships.

We turn data into business insights that drive results, helping companies excel in the competitive B2C and B2B spaces across 50+ verticals, discovering and catalizing opportunities for growth.

Our investment consulting services for HR tech startups

Market intelligence

Fundraising support

Pitch decks

Financial models

Investor research

Growth consulting

Go-to-market strategies

Marketing/sales materials

Design support

Learn more


What makes the industry appealing for HR tech financing opportunities?

The recent surge in remote working, focus on personalization, scalability, and cost-efficiency makes the HR tech industry a fertile ground for HR tech investors.

What is the current size of HR tech, and its potential for future HR tech startups?

In 2022, the HR tech market size was more than $32B, and it’s expected to double by 2030. Being a large and diverse industry, HR tech provides startups with numerous opportunities due to the increasing demand for automation, the leap of the gig economy, and the rising focus on employee experience.

How challenging is it to secure funding for HR tech startups nowadays?

Raising funding in the HR tech industry can be a tough nut to crack because of the high costs of developing and commercializing, long sales cycles, and the lack of industry potential understanding by the VCs.

How long does it take to create an HR tech pitch deck and a financial model for an HR tech startup?

Usually, we need from two to three weeks to finish an HR tech pitch deck and a financial model. But it’s better to discuss the time frames individually, as they can stretch depending on the project’s complexity.

What are the key mistakes HR tech startups make in their pitch decks?

Some HR tech pitch decks lack relevant numbers to demonstrate a strong market potential and a convincing answer to the ‘Why now?’ question. Another crucial mistake we see is the lack of a coherent and compelling investment narrative. Such decks don’t generate investor interest, who, in turn, choose more urgent and promising projects.

What are the main challenges HR tech startups face, and how are they tackling them?

The main challenges in the HR tech industry concern data privacy, compliance with the existing legacy systems, and user adoption. Many companies cooperate with industry whales to ensure a smooth integration, attract funding to invest in staff training and encryption and utilize relevant HR tech market entry strategies.

How competitive is the HR tech market?

The HR tech industry is competitive yet not cutthroat. The market is dominated by leading players such as Workday, SAP SuccessFactors, and Oracle HCM Cloud, but there is still much space for newcomers (the number of HR tech startups is less than 1K).

What services do you provide for investors who are either considering or have already invested in HR tech startups?

We assist investors in evaluating their investment opportunities within the HR tech realm. Our approach involves conducting thorough due diligence and presenting findings in a concise, visually rich presentation packed with valuable insights. Plus, we ensure comprehensive fundraising services to portfolio companies across the HR tech sector and beyond.

Do you provide HR tech M&A support?

Yes, sure! We offer assistance in your M&A goals, whether in the HR tech sector or beyond. Our services cover initial deal sourcing, valuations, due diligence, and post-deal cooperation.

Do you make intros to HR tech venture capital firms?

Certainly! We ensure connecting you with the relevant HR tech VCs. Following a careful assessment of your project against criteria like round size, team setup, and product, we’ll guide you through collaboration with investors throughout the deal process and beyond.

Do you provide comprehensive HR tech market research on request?

Certainly! We can provide tailored market intelligence on the HR tech industry. It consists of in-depth industry reports, competitor evaluations, and extensive market research, all strategically designed to give you a significant edge. Based on the data from trustworthy databases, we ensure you gain a comprehensive grasp of the HR tech landscape, including its complexities, scope, and competitive dynamics.

Which HR tech startup funding stages do you assist with?

Our team provides growth and fundraising support to HR tech startups at every stage, starting from Pre-Seed and ending with Series C+.

Looking to get into the HR tech industry? Reach out, and let's talk!

Whether you're looking for fundraising support, outsourced M&A advisory, growth strategy consulting, and presentation design, Waveup is your one-stop shop for that and more. Leave your email, and let’s discuss your project!

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