Forbes: Israeli Startup Taking Share From Workday
Startups can adapt better to changing customer needs than big public companies.
An Israeli startup is proving this in the market for software that helps companies manage their people. That market is worth about $15 billion and is expected to grow at a 9.2% annual rate to nearly $23 billion by 2022, according to MarketsandMarkets.
Investors have a few publicly-traded companies from which to choose if they want to get a piece of this growth. Companies that focus exclusively in this area include Workday, Kronos, Automatic Data Processing, Ultimate Software Group, SumTotal Systems, and Paycom Software. At the same time, more diversified technology companies like Oracle, SAP and IBM also offer such software. (I have no financial interest in the companies mentioned in this post).
The so-called human capital management software market has expanded what its products do over the years. While initially, such software helped companies with basic payroll and compensation management. It has expanded to include management of benefits and claims, personnel, learning, pension, compliance, succession, and tracking employee moves around the world.
A Tel Aviv-based startup Hibob has raised $25 million and is wining new customers in this market at a rapid clip. Founded in September 2015, its investors include Bessemer Venture Partners, Battery Ventures, and Fidelity Arbor and it has grown from a handful of people to 75 with offices in Tel Aviv and London.