Over the past year, with changing how (and where many of us) work, organizations have begun to rethink how well they manage their employees, and what tools they can do to do so. Use. Today, a startup building technology to address this challenge is announcing a major round of funding, underscoring its traction to date.
person – German startups that recruit small and medium-sized businesses (10–2,000 employees) and a one-on-one HR platform covering onboarding, payroll, absence tracking and other key HR functions, as well as $ 125 million in funding Has gathered At a post-money valuation of $ 1.7 billion.
C-D is being led by Index Ventures and Meritech, with past backers Accel, Lightspeed Venture Partners, Northzone, Global Founders Capital and Picus all participating.
$ 1.7 billion valuation is a big jump on the company $ 500 million valuation a year ago, And it comes after a year, where the startup has doubled its revenue and was not on the hunt for a raise, with many of its previous fundraisers at the bank.
Currently Persio counts some 3,000 SMEs as customers in Europe.
In an interview, Personnel co-founder and CEO, Hanno Rainer, said the startup will use the funds to continue building the product – which operates a bit like a workday, but is built for very small organizations – As well as expansion its presence in Europe.
Although SMEs can be a notoriously challenging customer segment, Rainer said that a new opportunity has emerged: a new wave of people in the SME sector is beginning to realize the value of being a modern and integrated HR platform.
“We wanted to be the leading HR platform for midmarket companies in 2016, and we knew it could be a great company, but we realize that what HR really means can be difficult to understand. ” “But I think one of the things our business has done in the past year is that HR is not just an important part, but probably the most important part of any business.”
It can be a magic turn to convert users, he said, to (as an example) equipment for recruitment, signing contracts and onboarding new employees remotely. Still, he acknowledges that the midmarket – particularly those companies that have not been built around technology – “has been lagging for years,” Spreadsheet, or even more surprisingly, pen and paper. “Supporting them by helping them digitize in a more efficient way is driving our business.”
Personnel are not just optimistic about startups as to how we will work. This change will bring a new appreciation (and hunger) to buy HR tools. Others like Hi bob His business has also seen huge growth and is raising funds to aggressively increase this opportunity.
Hibob wants to build more training equipment, underlining a feature race that Perseos must run to keep up.
But given the sheer number of SMBs in the European market – more than 25 million, and accounting for more than 99% of all enterprises, research according to research The European Union – The fact that many of them have yet to adopt any kind of HR platform is too much development for many players.
“SMEs are the backbone of the European economy, employing 100 million people across the continent, but it is also an area that has been focused primarily on large enterprises by software companies,” Martin Mignot, Individual K sits on the board. Said in a statement. “Personality changes, creating a set of powerful tools to meet the needs of small businesses.”
“We have had the pleasure of working with some of the most successful SaaS companies in the world, and given the success of the personnel and the immense market potential over the last five years, we are strongly focused on the ability to build an equally successful and influential business. Believe. “In its statement, added Alex Clayton, general partner of Meritech Capital. “After many fantastic discussions with Hanno in recent years, we are now excited to join the journey.” Clayton is also joining the board with this round.