In 2021 the Human Capital Management segment experienced record M&A activity, VC investments and IPOs, with activity accelerating into year end. The number of M&A transactions in Q4 increased 40% above Q3, with the largest rise occurring within Talent Acquisition and Core HR. VC investments increased over fivefold compared with 2020. The 2021 investment in wellness and learning companies alone exceeded the total capital raised in 2020 for all HCM segments. Finally, HCM IPO activity quadrupled relative to both 2019 and 2020. The capital flowing into the space has not only bolstered balance sheets for continued consolidation, but also for accelerated technology innovation as players strive to solve for complex macro-economic challenges.
Broader trends examined in the HCM space:
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