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Investors poured $4.93 billion into HR and work technology through the first three quarters of 2025, a 20% increase over the same period in 2024, according to WorkTech’s Q3 2025 Global Work Tech VC Report. The third quarter saw $1.37 billion invested across 35 deals, with four mega-deals exceeding $100 million. So far, the year has included 15 mega-deals, four of which hit in the most recent quarter.
As George LaRocque, founder of WorkTech, notes in the report, there are “early signals across several emerging sub-categories.” The third-quarter data reveal that the following four categories drew significant capital and early-stage investment activity.
Compensation intelligence gains traction George LaRocque, WorkTech
Compensation platforms drew three early-stage investments, part of what the report identifies as growing interest in “compensation intelligence and pay equity” tools. The category captured $37.8 million across two deals.
The early-stage focus suggests investors see opportunity in tools that go beyond traditional salary surveys. Pay transparency laws expanding across states, as well as changing disclosure requirements in Europe, are creating demand for real-time market data and modeling capabilities.
HCM technologies (which include compensation tools) captured over 50% of total deal volume and the majority of funding, maintaining what the report
