2024-12-20-DrakeStar-2024年第四季度全球HR科技报告_50页_9mb

Drake Star HR Tech Report Summary - Q4 2024

Core Content

Drake Star is a leading independent investment bank specializing in mid-market tech investment banking, with a strong focus on the HR Tech sector. The report highlights recent M&A activity, private placements, and market trends in the HR Tech industry, showcasing Drake Star's expertise and success in facilitating these transactions.

Key Highlights

Drake Star's Role in the Market

• Tech-Focused: Drake Star has deep expertise in 8 core tech verticals.
• Mid-Market Leader: It is the only independent boutique in the global top 10.
• Partner-Led: The firm is partner-owned with an entrepreneurial team.
• Global Reach: It has over 100 professionals across the US, Europe, and the Middle East.
• Transaction Record: Over 500 transactions completed in 2024, including several landmark deals.
• Recognition: Recognized with 9 industry awards, including 40 deal of the year and 6 leadership awards.

Market Overview

• HR Tech Market Growth: Expected to reach $28.8bn in 2024 with a CAGR of 13.4% until 2027.
• AI Adoption: Rapidly increasing, with 64% of HR professionals using AI for recruitment, 43% for learning and development, and 25% for performance management.
• AI Impact: Organizations using AI in HR report that employees are 16x more likely to see AI transforming roles rather than displacing them.
• Market Trends:
  • Large enterprises (5,000+ employees) are the most likely to adopt AI for HR purposes.
  • 60% of HR professionals are optimistic about AI's potential in their roles.

Notable Deals

Majority Recapitalization of GFOS with Riverside

• GFOS: Leading provider of Workforce Management software.
• Riverside: Financial partner enabling faster market growth.
• Quote: "Drake Star was the perfect partner for us to enter the next phase of growth." – Katharina Van Meenen-Röhrig, Co-CEO of GFOS

M&A Activity in Q3 2024

• Total M&A Transactions: 40
• Largest Deal: Benify/Zellis at $331m
• European Share: 37% of global deal making in Q3 2024

Notable Acquisitions

• Xcelerate Restoration Software acquired by Teamfront (via Mainsail Partners)
• Breakroom acquired by ZipRecruiter
• Zalvus acquired by Empion
• Akken Cloud acquired by Avionte Staffing Software (via Serent Capital)
• Hireclick acquired by Asure
• Able Jobs acquired by Instawork
• SKUAD acquired by Payoneer

Private Placements in Q3 2024

• Total Private Placements: 179
• Largest Funding Round: HR Path at $538m
• European Share: 26% of global private placement activity in Q3 2024

Notable Private Placements

• Oyster raised Series D from Silver Lake Waterman
• Cloudpay received development capital from Blue Owl Capital and Rho Ventures
• HiBob received development capital from NewView Capital
• SmartHR raised Series E from KKR and Teachers' Venture Growth
• Mercor raised Series A from Benchmark Capital
• Staffmatch raised funding from ISAI
• Built In raised funding from Skydeck Capital
• ConverzAI raised Series A from Menlo Ventures

Market Insights

Talent Acquisition

• Key Players: Upwork, ZipRecruiter, Visional, Fiverr, Equifax, First Advantage, Sterling, Grupa Pracuj, Seek
• Deal Activity: Continued strong market traction with a 11.3% increase in the Talent Acquisition Index in Q3 2024
• Share Price Growth:
  • Talent Acquisition Index: 11.3% increase
  • Public Market Growth: 25.4% for HCM/Talent Management

Human Capital Management / Talent Management

• Key Players: Oracle, AtoSS, Dayforce, Workday, Paycom, Paycor, Docebo, Paychex, Paylocity, Sage, Trinet, LTG Learning Technologies Group
• Deal Activity: Continued growth in the HCM/Talent Management Index with a 14% increase in Q3 2024
• Share Price Growth:
  • Oracle: 7.1%
  • Dayforce: 8.6%
  • Paycom: 21%
  • Paycor: 17%

Drake Star's HR Tech Universe

Drake Star covers the entire value chain in HR Tech, including:

• Talent Acquisition: Sourcing, recruitment marketing, selection, onboarding
• Human Capital Management: HRIS/Payroll, Benefits, Workforce Management, Contingent Labor
• Talent Management: Compensation, DEI/Compliance, Performance & Succession, Learning & Development, Employee Engagement, HR Analytics

Summary of Q3 2024 Activity

• M&A Transactions: 40, with the largest deal at $331m
• Private Placements: 179, with the largest funding round at $538m
• Market Growth: Strong performance across HR Tech segments, with significant share price increases for key players
• AI Adoption: Growing rapidly, with a focus on recruitment, learning and development, and performance management

Conclusion

Drake Star continues to be a prominent player in the HR Tech investment banking space, offering extensive M&A and private placement expertise. The firm's deep understanding of the sector, combined with its global reach and local presence, makes it a preferred partner for companies seeking growth and transformation in the HR Tech industry. The Q4 2024 report highlights the firm's continued success and the promising outlook for the HR Tech market in 2025.