Human Interest announced an additional $55 million to its Series C round of VC, bringing its total raised to $136.7 million for its benefits tech that connects 401k retirement savings plans with small and medium-sized businesses (SMB). SMB employers not only make up the market segment with the largest number of employers, but collectively they also have the largest number of employees, and payroll spend. Core HR tech offerings like payroll and benefits have the biggest opportunities for growth in the segment.
The key to success for technology in this segment lies in their ability to integrate into the core HCM and payroll provider suites and leverage those ecosystems as a channel.
WorkTech estimates the US benefits technology category of HR tech for the SMB to be $58 billion. We estimate the global market for HR technology in all categories to be $380 billion.
Benefits tech always receives a significant share of global HR technology venture capital, seeing $258 million in 2020. $5 billion was inveted in all HR technology categories globally in 2020. Get the full report, here.