Funding To HR Software Startups Rises As M&A Activity Heats Up

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As of mid-September, HR software startups globally have raised a collective $1.9 billion, per Crunchbase data — just under the $2 billion raised by such startups in all of 2024. U.S.-based human resources software startups have raised a combined $1.2 billion, up from the $1.1 billion raised in all of 2024.

It’s important to note that while funding may be on an uptick this year, investment is still among the lowest it’s been in several years. The $2 billion raised in 2024 was not only far less than the $10.5 billion peak in 2021 — when startup investment overall was inflated — but also lower than all the years prior since 2018.

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