Employee survey and workforce analytics company Perceptyx received a “significant” investment from financial firm TCV. The company said it will use the funds to speed up its development and expansion efforts.
Perceptyx provides its customers with analytics that can be used to improve the employee experience, predict business challenges and influence strategic decision-making.
In an interview with the HCM Technology Report, Director of Marketing Daniel Norwood said that as a private company, Perceptyx has elected not to disclose the deal’s terms. “It’s not a small investment,” he said, adding that the funds will allow the company to move forward with expansion efforts more aggressively than it might have on its own..@Perceptyx will use 'significant' investment to ramp up sales, marketing, development. #HR #HRTech Click To Tweet
“The investment is really more of an opportunity for us to shift gears and throw some fuel on the fire and go even faster than what we’d have been able to do from a self-funded perspective,” he explained.
TCV’s funding is the first external investment Perceptyx has accepted since its founding in 2003. The company said it’s been profitable since it started and has a client retention rate of 95 percent. About 30 of the Fortune 100 are among its customers.
Perceptyx Plans to Move Rapidly
Among other things, the company plans to open a technology center in Poland, which will allow it to more rapidly develop a number of “innovations,” and to expand its sales, marketing and other activities in Canada and Europe.
Two of TCV’s executives, General Partner Nari Ansari and Vice President Dave Eichler will join Perceptyx’s board of directors.
Perceptyx CEO John Borland said TCV’s investment “reaffirms” the company’s approach to innovation, customer retention and the growing demand to more tightly integrate talent analytics with business strategy and operations.
TCV made its investment as consensus solidifies around the importance of data and analytics in workforce planning and Human Capital Management in general. According to analyst firm Sierra-Cedar, 41 percent of CHROs plan to increase spending on talent analytics in particular by the end of 2025. The firm estimates the overall HCM market will be worth some $23 billion in that timeframe.
In a separate report, researcher MarketsandMarkets estimated that the workforce analytics market alone will be worth around $3.6 billion by 2024. It said the need to automate HR processes, scale HR activities using advanced technologies and improve workforce engagement efforts are driving the growth.
As promising as the market it, it’s also crowded. CultureAmp, Symphony Talent and TriNet recently launched analytics tools while ENGAGE Talent and PredictiveHR announced a platform that melds internal employee data with analytics on industries and competitors.
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