Tech funding drives innovation and makes new tools available, but it can also change how products are priced or whether they stay on the market. That’s why everyone—from HR leaders relying on enterprise tools to vendors building them—is keeping an eye on where the money is coming from and how it’s shaping the market.

The numbers contain a lot of zeros. During the first half of 2025, HR tech companies secured $3.55 billion across 119 confirmed deals, according to the recently released WorkTech Global Market Briefing.

Report author and WorkTech founder George LaRoque says these dollars represent an “uptick in capital velocity and investor confidence.” He identifies agentic AI, payroll and recruitment platforms as hot categories driving the moment.

The latest: SAP to acquire SmartRecruiters, growing its talent acquisition capabilities

Learning tech, benefits platforms and collaboration tools are what he calls “cooling zones” so far this year.

Investor Experience at HR Tech

If investor-related news and opportunities sound like your cup of tea, mark your calendars for Sept. 16-18 in Las Vegas, when HR Tech 2025 rolls out the all-new Investor Experience. This opportunity connects innovators with dealmakers investing in or acquiring HR tech companies, a gathering that is known to attract the likes of Goldman Sachs, TPG, Warburg Pincus, LinkedIn, Apax Partners and others.

The Investor Experience, revamped for 2025, is a curated program led by LaRocque that provides exclusive briefings, meaningful introductions and access to vetted vendors—all of which he is facilitating through a single point of entry.

According to LaRocque, investors can connect with founders before they gain widespread attention and establish their authority. For vendors, this occasion presents a confidential, high-impact opportunity to explore investment discussions in a trusted environment.

To participate, early coordination is encouraged. LaRocque is already engaging with firms to pre-map meetings, identify strategic fits and ensure the right people are in the right rooms when it matters most. You can reach him here.

Additionally, Pitchfest remains a key anchor for HR Tech, but it too evolves in 2025. The competition continues to offer cash prizes (up to $30,000) but adds expanded strategic visibility and first-look access for investors.

HR tech in the news

Instructure, an edtech company behind Canvas LMS, has launched Canvas Career, a workforce upskilling platform to help businesses address the decline in employee skill relevance by enabling ongoing reskilling and professional development.

Hexaware, a global IT and AI services provider, acquired SMC Squared, a Texas-based offshoring firm, for $120 million to expand its footprint in the Global Capability Center market and enhance strategic services for enterprise clients.

Fintech provider WEX launched an AI-powered FSA claims tool aimed at being highly precise in identifying invalid submissions, streamlining reimbursements and reducing administrative burdens on HR teams and employees.

TalentLMS, an online learning platform, and BambooHR, an HR software provider, surveyed 1,156 recent U.S. hires. Results showed ineffective onboarding, with over half reporting a focus on admin over training and a lack of personalized learning.

Virtual healthcare company Teladoc Health launched Wellbound, a new employee assistance program offering integrated care—including mental health via BetterHelp—aimed at improving wellness outcomes and helping employers get more value from EAP investments.

Charter Communications, a U.S. broadband and cable provider operating under the Spectrum brand, joined the “Invest in America” initiative, matching government contributions to employee children’s savings accounts to support working families nationwide.

Dayforce released a report identifying organizational “friction” in staffing, technology and change as key productivity blockers, urging businesses to address these gaps to unlock employee effectiveness.

Global relocation management company CapRelo announced an AI-powered employer portal that provides real-time dashboards for tracking employee relocations, enhancing efficiency and complementing its Moxie chatbot for mobile workforce management.

Cybersecurity training platform KnowBe4 released its Q2 2025 phishing report, showing most attacks mimic trusted internal messages. HR and IT themes dominate, and PDF attachments are increasingly used, emphasizing the need for stronger human risk defenses.

Sparrow employee leave management technology raised $35 million in Series B funding led by SLW, bringing total investment to $64 million. The funding will help the company scale its platform and expand into broader labor compliance solutions globally.

Advisory firm ThriveHR and text analytics platform Luminoso have partnered to launch a new solution combining consulting with AI-powered text analytics, intended to help HR leaders understand employee sentiment and act quickly.

Workplace AI platform Beamery launched its Workforce Intelligence Suite, featuring Task Intelligence to break roles into tasks for AI automation. It also introduced Ray, an embedded AI consultant helping enterprise leaders make talent decisions across the platform.

Equitable, a financial services organization, announced the integration of Employee Navigator’s Plan Build API into its digital employee benefits platform. This enhancement aims to provide brokers and clients with faster, more efficient services for managing employee benefits.

HR tech people moves

Kelsey Holthus has been promoted to CHRO at security platform Entrust. With the company since 2008, she has expertise in org design, change management and compensation. She will focus on talent development and evolving Entrust’s culture for growth.

IRIS Software Group, a UK-based business software provider for HR, payroll, accountancy and education, appointed Jason Dies as CEO to lead its next phase of international growth and platform innovation.

Scripta Insights, an AI-powered pharmacy navigation company, appointed Ken Pickering as chief technology officer. His hiring supports the company’s tech growth among self-insured employers and TPAs and its expansion into health plans and Medicare Advantage.

More from HR Executive

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Meet one of HR’s Rising Stars: Transforming talent acquisition through AI is at the heart of Sarah Tilley’s work at ServiceNow. Under her leadership, the Fortune 500 company has reimagined how it finds, attracts and evaluates talent by embedding AI-powered tools across the hiring process—without losing sight of the human touch.

Mary Faulkner, principal at advisory firm IA, says digital modernization begins with a fundamental question: How should we approach the work we need to do? Process-led initiatives start by mapping workflows, pinpointing pain points and reimagining work. She says that with a clear view of processes, technology choices become easier.