Human resource tech remains hot with investors, as the space minted the newest unicorn Tuesday.
Spain-based Factorial raised a $120 million Series C led by Atomico, valuing the company at $1 billion. The round also included participation from GIC and all of the company’s previous investors, including Tiger Global, CRV, K-Fund and Creandum.
The new round doubled the startup’s valuation from September 2021 when it raised an $80 million Series B.
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Factorial offers a human resource platform for the often overlooked SMB sector, automating many HR processes such as recruiting and payroll in one tool. The company has seen annual revenue growth of 200% since 2019 and now serves more than 7,000 businesses, according to the company.
The new cash will be used to strengthen its presence in both the European and American markets.
HR tech grows
The pandemic brought about the need for new human resource tools as companies looked to hire in different areas due to remote work and onboard and manage a disparate workforce that could now be global.
Despite the pandemic waning, the need for new human resource tools has not.
In 2020, only about $2.6 billion of venture capital was invested in the space, according to Crunchbase data. However, last year the sector exploded as it took in more than $10 billion.
It is unlikely this year will realize that same level of investment through just more than nine months, the space has already seen nearly $7 billion, per Crunchbase.
That number is especially impressive when one considers the current venture capital pullback the market is seeing.
Just last month, Chicago-based Atlas raised a $200 million Series B funding led by San Francisco-based growth investor Sixth Street. Atlas helps companies build a presence in new countries by dealing with compliance and payroll as the employer of record.
Founded in 2016, Factorial has now raised $220 million, according to Crunchbase data.
Illustration: Dom Guzman
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