Harbor View Advisors Q2 2022 Human Capital Management Report

HVA’S Q2 2022 HCM QUARTERLY REPORT

Human Capital Management Q2 2022

Q2 HCM SUMMARY & OUTLOOK HVA’S Q2 2022 HCM QUARTERLY REPORT During the second quarter of 2022, HCM venture funding and M&A dropped from 2021 record levels but remained above previous years as there is still significant capital to deploy.

Strong headwinds such as recession fears, rising interest rates and inflation are impacting early-stage pre-money valuations which have dropped significantly from the 2021 highs. In M&A, valuations in all HCM sectors have also dropped relative to last year but deal volumes remain healthy. In Q2, there were 53 M&A transactions within HR Tech along with 40 transactions within Staffing.

VC Pre-Money Valuations (Early Stage) $200M

$175M

$150M $77M

$100M $50M $0M

$49M $15M 2018

$28M

2019 Average

$83M

$65M

$45M

2020

$73M $21M

2021

YTD 2022

Median

Staffing: A Focus on Temporary and IT Robust M&A activity within staffing highlights the continued demand for talent, especially in the IT and Temporary staffing sectors. Futuris acquired IT staffing provider Savantis Solutions completing the company’s third acquisition this year to strengthen its IT staffing solution. Another large player within IT staffing, Volt Information Sciences, was acquired in a public to private transaction by Vega Consulting, a subsidiary of American CyberSystems for a 99% premium to the company’s stock price. Temporary staffing dominated activity this quarter with 10 acquisitions recorded in the space.

Notably, freelance hiring and management solution WorkGenius acquired temporary staffing provider JBC for $136M. Similarly, global recruitment provider Randstad acquired temporary staffing platform Side to increase the company’s digital presence and capabilities.

Core HR: Decreasing Time to Onboard Streamlining onboarding functions is a top priority for employers as they aim to ramp employees quickly and reduce the administrative burden on HR. The workforce management space was responsible for 35% of the M&A transactions within Core HR in the second quarter. Competition for top talent is higher than ever and companies are leveraging software to shorten the onboarding process. Streamlined onboarding specialist Velocity Global raised $400M in Series B funding from Norwest Venture Partners. Moreover, digital onboarding platform Humanforce received a $44M growth investment from Accel KKR to fund future acquisitions.

Talent Acquisition: Cross Border Hiring & Payments The increase in remote work in the wake of the pandemic has made it more feasible for employers to access a global talent pool. Given the complexity of international hiring and payments, companies are turning to outsourced solutions which have garnered significant attention from investors. Global hiring and payroll platform Remote raised $300M in Series C funding at a pre-money valuation of $2.7B, underscoring employers’ efforts to hire talent internationally.

Similarly, provider of global talent mobility tools Brookfield RPS, subsidiary of Relo Group, was acquired by employee relocation provider SIRVA Worldwide.

Talent Management: Apprenticeships and Skills Marketplaces Companies continue to upskill their existing workforce and are optimizing methods of learning through apprenticeships and team-based experiences. Finding effective ways for employees to learn in the flow of work has become a top priority for employers. For example, online apprenticeship platform Multiverse raised $220M Series D funding at a $1.5B premoney valuation. Additionally, professional development platform GO1 raised $100M at a $1.9B pre-money valuation. On the M&A side, Learn In, an upskilling platform and learning marketplace, was acquired by Degreed, highlighting the demand for capability training.

1

HCM PUBLIC MARKETS HVA’S Q2 2022 HCM QUARTERLY REPORT

COMPARATIVE MEDIAN REVENUE MULTIPLES

COMPARATIVE MEDIAN EBITDA MULTIPLES

TTM Median Revenue Multiples

TTM Median EBITDA Multiples

6.4x 5.5x

4.7x 2.9x

23.8x 5.7x

19.9x

17.4x

17.9x 16.0x

11.8x

2.7x

8.5x

7.1x

0.7x 0.5x Staffing

Talent Acquisition 3/31/2022

Talent Management

Staffing

Core HR

Talent Acquisition 3/31/2022

6/30/2022

Talent Management 6/30/2022

Source: PitchBook, Data as of June 2021 TTM

ONE-YEAR HISTORICAL INDEX PERFORMANCE 200

150

100

50

0

S&P 500

HR Tech

Staffing

Source: Refinitiv Indices based on equal-weighted prices and comprised of: HR Tech | ADP, ASUR, BNFT, CDAY, DHI, FC, HSII, HSTM, KFY, NSP, ORCL, PAYX, PAYC, PCTY, SAP, SGE, TNET, WDAY, XM Staffing | AMN, ASGN, BBSI, BGSF, CCRN, JOB, KELYA, KFRC, MAN, MHH, RGP, RHI, STAF, TBI Excludes companies not traded prior to 6/1/2021

2

Core HR

HCM PUBLIC TRADING STATISTICS HVA’S Q2 2022 HCM QUARTERLY REPORT

CORE HR Company Name ADP Asure Software Benefit Focus Ceridian Insperity Oracle Paychex Paycom Software Paylocity SAP The Sage Group Trinet Group Workday

Enterprise Value ($B)

TTM Revenue ($B)

89.4

15.68

0.1 0.5 8.1 3.6 240.6 40.6 16.5 9.6 116.6 8.7 5.0 33.6

0.08 0.26 1.08 33.58 42.44 4.44 1.14 0.79 33.19 2.52 4.70 5.40

Revenue Multiple

EBITDA Multiple

3.82

5.7x

23.4x

0.02 0.01 0.02 0.23 13.43 2.01 0.36 0.12 7.49 0.55 0.62 0.34

1.8x 1.9x 7.5x 0.1x 5.7x 9.2x 14.6x 12.1x 3.5x 3.5x 1.1x 6.2x 5.7x

6.0x n/m n/m 16.0x 17.9x 20.3x 45.7x n/m 15.6x 15.8x 8.1x n/m 16.0x

Revenue Multiple 2.9x 6.4x 2.4x 2.6x 2.5x 3.6x 5.8x 1.7x 2.7x

EBITDA Multiple n/m n/m n/m 22.6x 14.2x 19.9x n/m n/m 19.9x

Revenue Multiple 0.9x 2.9x 4.4x 3.0x 2.2x 4.9x 1.9x 2.9x

EBITDA Multiple 4.1x 9.7x n/m 22.4x 11.8x n/m n/m 11.8x

Revenue Multiple 0.4x 1.2x 1.2x 0.4x 0.6x 0.5x 0.3x 0.4x 0.1x 0.8x 1.0x 0.2x 0.8x 1.7x 0.9x 1.2x 0.3x 0.5x

EBITDA Multiple 9.0x 8.2x 11.0x 6.8x 7.4x 4.7x 2.0x 3.6x 4.2x 11.7x 5.1x 6.4x 7.9x 9.7x 8.4x 8.6x 6.2x 7.1x

TTM EBITDA ($B)

Median:

TALENT MANAGEMENT Company Name Coursera Docebo Elmo Software Franklin Covey Healthstream LTG Qualtrics Udemy

Enterprise Value ($B)

TTM Revenue ($B)

TTM EBITDA ($B)

1.3 0.7 0.1 0.6 0.6 1.3 6.7 0.9

0.45 0.11 0.06 0.25 0.26 0.36 1.17 0.54

-0.15 -0.01 -0.03 0.03 0.05 0.06 -1.08 -0.07

Median:

TALENT ACQUISITION Company Name DHI First Advantage Fiverr Sterling Talent Solutions HireRight Upwork ZipRecruiter

Enterprise Value ($B)

TTM Revenue ($B)

TTM EBITDA ($B)

27.6 2.2 1.4 2.1 1.7 2.6 1.6

30.45 0.77 0.32 0.69 0.78 0.53 0.84

6.70 0.23 -0.04 0.09 0.15 -0.06 0.00

Median:

STAFFING Company Name Adecco Group AMN Healthcare Services ASGN Barrett Business Services BG Staffing Cross Country Healthcare GEE Group Heidrick & Struggles Kelly Services Kforce Korn Ferry Manpower Group Mastech Digital Recruit Resources Connection Robert Half International TrueBlue

Enterprise Value ($B)

TTM Revenue ($B)

TTM EBITDA ($B)

9.6 5.7 5.2 0.4 0.1 1.0 0.0 0.5 0.6 1.3 2.6 4.6 0.2 43.9 0.7 8.0 0.6

24.88 4.65 4.19 0.98 0.24 2.14 0.16 1.09 5.00 1.63 2.63 20.94 0.23 25.56 0.76 6.88 2.27

1.07 0.69 0.47 0.06 0.02 0.22 0.03 0.13 0.14 0.11 0.52 0.72 0.02 4.52 0.08 0.93 0.10

n/m: multiples less than 0x or greater than 50x Source: PitchBook

3

Median:

HCM M&A SUMMARY HVA’S Q2 2022 HCM QUARTERLY REPORT

RECENT NOTABLE TRANSACTIONS

Undisclosed

$200M

$10.7B

Undisclosed

Undisclosed

Undisclosed

$136M

MAY 2022

JUN 2022

JUN 2022

Undisclosed

Undisclosed

Undisclosed

APR 2022

APR 2022

JUN 2022

MAY 2022

JUN 2022

JUN 2022

JUN 2022

DEAL COUNT BY SUB-SECTOR

Staffing Transactions Drove Robust M&A Activity 120 30

100

26 80

60

7 3

40

20

0

32

3 8 3 4 6

2 8 2

49 33

36

3 6

35

2 8 4

40

11

1 8

8 6

7

17

14

5 9

11

10

12

27

30

11

9

9

13

50 32

30

31

4

3 11

10

17 7

18

17

23

21

17

33

36

40

29 11 15

13

20

13

9 37 23

23

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 2018

2019 Staffing

Core HR

2020 Talent Acquisition

Sources: PitchBook, SIA

4

2021 Talent Management

2022

HR M&A TRANSACTIONS HVA’S Q2 2022 HCM QUARTERLY REPORT

CORE HR Deal Date

Company Name

Deal Size Revenue ($M) ($M)

Acquirer

EBITDA ($M)

Revenue Multiple

EBITDA Multiple

Jun-22 Rizing

Wipro

$540

n/m

n/m

n/m

n/m

Jun-22 TrackTik

Trackforce Valiant

n/m

n/m

n/m

n/m

n/m

Jun-22 Advanced HR

Pave

n/m

n/m

n/m

n/m

n/m

Jun-22 OnShift

ShiftKey

n/m

n/m

n/m

n/m

n/m

Jun-22 EmPower HR

Vensure Employer Services

n/m

n/m

n/m

n/m

n/m

Jun-22 Renewal

PayNW

n/m

n/m

n/m

n/m

n/m

Jun-22 Focus OneSource

G&A Partners

n/m

n/m

n/m

n/m

n/m

May-22 Back

Personio

n/m

n/m

n/m

n/m

n/m

May-22 Compgauge

Bravado

n/m

n/m

n/m

n/m

n/m

May-22 Duley-Bolwar & Associates

AssuredPartners

n/m

n/m

n/m

n/m

n/m

May-22 Beeline

Stone Point Capital

n/m

n/m

n/m

n/m

n/m

Apr-22 Orovia Education

Tes Global

n/m

n/m

n/m

n/m

n/m

Apr-22 Humanforce

Accel-KKR

$44

n/m

n/m

n/m

n/m

Apr-22 Business Benefits Group

Patriot Growth Insurance

n/m

n/m

n/m

n/m

n/m

Apr-22 Woffu

Visma Group

n/m

n/m

n/m

n/m

n/m

Apr-22 Lanteria

FirstPrinciples, TinySeed, & Smash.vc

n/m

n/m

n/m

n/m

n/m

Apr-22 CIC Plus

Experian

$187

n/m

n/m

n/m

n/m

EBITDA ($M)

Revenue Multiple

EBITDA Multiple

TALENT MANAGEMENT Deal Date

Company Name

Deal Size Revenue ($M) ($M)

Acquirer

Jun-22 EduBrite

LinkedIn

n/m

n/m

n/m

n/m

n/m

Jun-22 LearnIn

Degreed

n/m

n/m

n/m

n/m

n/m

Jun-22 GetFive

Talent Inc.

n/m

n/m

n/m

n/m

n/m

Jun-22 Anaplan

Thoma Bravo

$10,700

$632

-$211

16.9x

n/m

Jun-22 WiiSmile

Eurazeo

$70

n/m

n/m

n/m

n/m

Jun-22 Infobase

Northlane Capital Partners

n/m

n/m

n/m

n/m

n/m

Jun-22 Leesman

HqO

n/m

n/m

n/m

n/m

n/m

Jun-22 SumTotal

Cornerstone On Demand

$200

$120

n/m

1.7x

n/m

Jun-22 StorIQ

Cegid

n/m

n/m

n/m

n/m

n/m

Jun-22 Vistage Worldwide

Gridiron Capital

n/m

n/m

n/m

n/m

n/m

Source: PitchBook

5

HR M&A TRANSACTIONS HVA’S Q2 2022 HCM QUARTERLY REPORT

TALENT MANAGEMENT (CONT.) Deal Date

Company Name

Deal Size Revenue ($M) ($M)

Acquirer

EBITDA ($M)

Revenue Multiple

EBITDA Multiple

Jun-22 Hitch

ServiceNow

n/m

n/m

n/m

n/m

n/m

Jun-22 Dotin

OpenSesame

n/m

n/m

n/m

n/m

n/m

May-22 The Enablement Squad

WorkRamp

n/m

n/m

n/m

n/m

n/m

May-22 Javelo

Sympa

n/m

n/m

n/m

n/m

n/m

Apr-22 CoreAxis

eLearning Brothers

n/m

n/m

n/m

n/m

n/m

Apr-22 HealthQuest

Clearview Capital

n/m

n/m

n/m

n/m

n/m

Apr-22 Coorpacademy

GO1

n/m

n/m

n/m

n/m

n/m

Apr-22 WorkTango

Kazoo

n/m

n/m

n/m

n/m

n/m

Apr-22 Ascendo

Crehana

n/m

n/m

n/m

n/m

n/m

EBITDA ($M)

Revenue Multiple

EBITDA Multiple

TALENT ACQUISITION Deal Date

Company Name

Deal Size Revenue ($M) ($M)

Acquirer

Jun-22 Jump.work

Jobandtalent

n/m

n/m

n/m

n/m

n/m

Jun-22 BLOOVO

OHR

n/m

n/m

n/m

n/m

n/m

Jun-22 Listopro

Revelo

n/m

n/m

n/m

n/m

n/m

Jun-22 GetWork

Adzuna

n/m

n/m

n/m

n/m

n/m

Jun-22 Softgarden

Grupa Pracuj

$132

n/m

n/m

n/m

n/m

Jun-22 Talentry

CleverConnect

n/m

n/m

n/m

n/m

n/m

May-22 TalentWall

Crosschq

n/m

n/m

n/m

n/m

n/m

May-22 LocalWise

FlexJobs

n/m

n/m

n/m

n/m

n/m

May-22 Brookfield RPS

SIRVA Worldwide

n/m

n/m

n/m

n/m

n/m

May-22 51job

DCP Capital, Ocean Link Partners

$5,700

$685

n/m

8.3x

n/m

Apr-22 Hyrell

Hireology

n/m

n/m

n/m

n/m

n/m

Apr-22 GoodHire

Checkr

n/m

n/m

n/m

n/m

n/m

Apr-22 Hrestart

Worc

n/m

n/m

n/m

n/m

n/m

Apr-22 Inflection

Checkr

n/m

n/m

n/m

n/m

n/m

Apr-22 Comparably

ZoomInfo

n/m

n/m

n/m

n/m

n/m

Source: PitchBook

6

STAFFING M&A TRANSACTIONS HVA’S Q2 2022 HCM QUARTERLY REPORT

STAFFING Deal Date

Company Name

Jun-22 Future State Consulting

Acquirer

Deal Size Revenue ($M) ($M)

EBITDA ($M)

Revenue Multiple

EBITDA Multiple

The Planet Group

n/m

n/m

n/m

n/m

n/m

Levi, Ray, & Shoup Sales Xceleration Talent Systems Talent Systems The Halifax Group Futuris Workport Co Soal Technologies Ceinsys Tech WorkGenius Ascend Staffing Industrial Skilled Trades The Acacium Group Accerete Health Partners ARR Healthcare The Acacia Group Arthur J. Gallagher & Co Ms. Julie Ayala Stephens Lingo Staffing

n/m n/m n/m n/m n/m n/m n/m n/m $9 $136 n/m n/m n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m

AMN Healthcare Services

n/m

n/m

n/m

n/m

n/m

n/m n/m n/m n/m n/m $1,650 n/m

n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m

n/m n/m n/m n/m n/m n/m n/m

Ingenovis Health Inc

n/m

n/m

n/m

n/m

n/m

Oak Healthcare Staffing MedHQ American CyberSystems Inc Randstad

n/m n/m n/m n/m

n/m n/m n/m n/m

n/m n/m n/m n/m

n/m n/m n/m n/m

n/m n/m n/m n/m

Apr-22 Canadian Health Care Agency

Premier Health of America

$14

n/m

n/m

n/m

n/m

Apr-22 Headway Workforce Solutions Apr-22 Epic Staffing Group

Staffing 360 Solutions The Pritzker Organization

$14 n/m

n/m n/m

n/m n/m

n/m n/m

n/m n/m

Apr-22 BHI Energy

Westinghouse Electric Co

n/m

n/m

n/m

n/m

n/m

SkillStorm The Reserves Network E78 Partners Hirewell

n/m n/m n/m n/m

n/m n/m n/m n/m

n/m n/m n/m n/m

n/m n/m n/m n/m

n/m n/m n/m n/m

Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 Jun-22 May-22 May-22 May-22 May-22 May-22

Flucrum Consulting, LLC Quintegra Resourcing eTribez Casting Staff Me Up The Liberty Group Savantis Solutions Workport Asia Tekberry Allygrow JBC Apprentice Personnel Leapros Workforce Solutions R&D Partners Nordic Consulting Group Enterprise Medical Recruiting The Baer Group Valerie Frederickson & Co Imprimis Group FJC Personnel

May-22 Connetics USA May-22 May-22 May-22 May-22 May-22 May-22 Apr-22

Struct HireHand Technical Connections Inc Pediatric Therapeutic Services Serti Placement TI House of HR KHS Personnel

Apr-22 Vista Staffing Solutions Apr-22 Apr-22 Apr-22 Apr-22

Apr-22 Apr-22 Apr-22 Apr-22

Cunningham Elite Staffing Becker Health Volt Information Sciences Side

Talent Path Staffing Connections The CFO Suite Rainmakers

ZIGExN Reverence Kore1 Kelly Services Astek Canada Bain Capital Jarell Group

Sources: PitchBook, SIA

7

HCM FINANCING TRANSACTIONS HVA’S Q2 2022 HCM QUARTERLY REPORT

NOTABLE FINANCINGS GLOBAL RECRUITMENT

COACHING PLATFORM

$300M

$200M

6%

11%

39%

39%

APR 2022

JUN 2022

CORPORATE TRAINING

LEARNING PLATFORM

10%

43%

55%

50%

7%

7%

42%

46%

51%

47%

47%

$100M

$220M

JUN 2022

JUN 2022

2018

2019

2020

Early-Stage

2021

Late-Stage

2022 YTD

PE Growth/Expansion

QUARTERLY FINANCING ACTIVITY

$5,986

120

$6,308

100 $4,523 $3,972

$3,595

60

$2,027 $662 $760

Qtr1

Qtr2

$1,029 $363 Qtr3

2018

Qtr4

$782 $945

Qtr1

Qtr2

$1,337

Qtr3

$767 $783 $746 $928

Qtr4

Qtr1

Qtr2

2019

Qtr3

20

Qtr1

2020 Sum of Deal Sizes

Count of Company

Source: PitchBook

8

40

$513

Qtr4

80

Qtr2

Qtr3

2021

Qtr4

Qtr1

Qtr2

2022

0

HR TECH UNICORN TRACKER HVA’S Q2 2022 HCM QUARTERLY REPORT

Q2 2022 NEWLY MINTED UNICORNS

HR TECH UNICORNS

Source: PitchBook

9

HCM VENTURE CAPITAL ACTIVITY HVA’S Q2 2022 HCM QUARTERLY REPORT

EARLY-STAGE VENTURE CAPITAL Deal Date

Company Name

Broad Category

Deal Size ($M)

Pre-Money Valuation ($M)

Lead/Sole Investors

Jun-22

Screenloop

Talent Acquisition

$7

n/m

Stride.VC

Jun-22

Workvivo

Talent Management

$22

n/m

Tiger Global

Jun-22

Tapcheck

Talent Management

$20

n/m

PeakSpan Capital

Jun-22

Unify Jobs

Talent Acquisition

$5

$5

Jun-22

&Open

Talent Management

$26

n/m

Molten Ventures

Jun-22

Bardeen

Core HR

$19

$50

Insight Partners

Jun-22

WorkMotion

Core HR

$50

n/m

Canaan Partners

Jun-22

TaskHuman

Talent Management

$19

$116

Gaingels

Jun-22

Wilco

Talent Management

$7

n/m

Hetz Ventures

Jun-22

CEIPAL

Talent Acquisition

$21

n/m

Camden Partners

Jun-22

Canditech

Talent Acquisition

$9

n/m

Insight Partners & StageOne Ventures

Jun-22

Terra.do

Talent Acquisition

$5

n/m

Avaana

Jun-22

Pazcare

Core HR

$8

n/m

Jafco Asia

Jun-22

Nava Benefits

Core HR

$40

n/m

Thrive Capital

Jun-22

Finch

Core HR

$15

n/m

Menlo Ventures

Jun-22

Reflex

Talent Acquisition

$5

$14

Indicator Ventures

Jun-22

Ethena

Talent Management

$30

$170

Jun-22

Teal

Talent Acquisition

$6

$25

Gaingels

Jun-22

Hourly.io

Core HR

$27

$45

Vintage Investment Partners

May-22

SkillPointe

Talent Management

$2

n/m

Undisclosed

May-22

PowerUs

Talent Acquisition

$10

n/m

General Catalyst

May-22

Glickon

Talent Management

$3

n/m

Sinergia Venture Fund

May-22

Assembled

Core HR

$51

$420

New Enterprise Associates

May-22

RepVue

Core HR

$5

$19

S3 Ventures

May-22

Flexa

Talent Acquisition

$3

n/m

Ada Ventures

May-22

TestGorilla

Talent Acquisition

$70

n/m

Notion & Atomico

May-22

Keep Financial

Core HR

$9

n/m

Andreessen Horowitz

May-22

Pintarnya

Talent Acquisition

$6

n/m

Sequoia Capital India

May-22

MedGeo Ventures

Talent Acquisition

$4

n/m

Undisclosed

May-22

Curious Thing

Talent Management

$5

$16

Hawkstone Capital

May-22

Manara

Talent Acquisition

$3

n/m

Stripe

May-22

Wellbees

Talent Management

$2

n/m

212

May-22

GitStart

Talent Acquisition

$5

$40

Neo Innovation

May-22

50skills

Talent Acquisition

$3

n/m

Frumtak Ventures

May-22

AboveBoard

Talent Acquisition

$6

n/m

True.

Sources: PitchBook, HRTECHFeed

10

North Coast Capital

Lachy Groom

HCM VENTURE CAPITAL ACTIVITY HVA’S Q2 2022 HCM QUARTERLY REPORT

EARLY-STAGE VENTURE CAPITAL (CONT.) Deal Date

Company Name

Broad Category

Deal Size ($M)

Pre-Money Valuation ($M)

Lead/Sole Investors

May-22

TechWolf

Core HR

$11

$27

Stride.VC

May-22

Atma

Talent Acquisition

$5

n/m

AC Ventures (Indonesia)

May-22

HireLogic

Talent Acquisition

$4

n/m

Edward J. Zander, Mike Pehl, Ann Fandozzi

May-22

Bite Ninja

Talent Acquisition

$16

n/m

Owl Ventures, Y Combinator

May-22

BarRaiser

Talent Acquisition

$4

n/m

021 Capital, Global Founders Capital

Apr-22

Pando

Talent Management

$7

n/m

Craft Ventures

Apr-22

GoodJob

Talent Acquisition

$6

n/m

Undisclosed

Apr-22

Wisq

Talent Management

$40

n/m

Norwest Venture Partners

Apr-22

Claira

Talent Management

$5

$6

Heartland Ventures

Apr-22

StaffCircle

Talent Management

$4

$15

Undisclosed

Apr-22

Aspecta.ai

Talent Acquisition

$2

n/m

ZhenFund

Apr-22

SellX

Talent Management

$2

n/m

Ground Up Ventures & Sate Of Mind Ventures

Apr-22

Chattr

Talent Acquisition

$4

n/m

Florida Funders

Apr-22

Five to Nine

Talent Management

$4

$10

Black Ops Ventures

Apr-22

KarmaCheck

Talent Acquisition

$15

n/m

Velvet Sea Ventures

Apr-22

Landed

Talent Acquisition

$8

n/m

Javelin Venture Partners & Blockchain Capital

Apr-22

Qureos

Talent Management

$3

n/m

Colle Capital Partners & COTU Ventures

Apr-22

myComply

Core HR

$3

n/m

Undisclosed

LATE-STAGE VENTURE CAPITAL Deal Date

Company Name

Broad Category

Deal Size ($M)

Pre-Money Valuation ($M)

Lead/Sole Investors

Jun-22

Pave

Core HR

$100

$1,500

Jun-22

Gloat

Talent Management

$90

$910

Generation Investment Management

Jun-22

Nomad Health

Staffing

$105

n/m

Adams Street Partners & Icon Ventures

Jun-22

JobGet

Talent Acquisition

$52

$400

JAZZ Venture Partners & Sanabil Investments

Jun-22

Personio

Core HR

$200

$8,030

Jun-22

Transfr VR

Talent Management

$35

$130

Lumos Capital Group

Jun-22

Fountain

Talent Acquisition

$100

n/m

B Capital Group

Jun-22

CoachHub

Talent Management

$200

n/m

Sofina & Softbank Vision Fund

Jun-22

Cloverleaf

Talent Management

$9

n/m

Origin Ventures

Jun-22

RippleMatch

Talent Acquisition

$45

$165

Goldman Sachs Asset Management

Jun-22

Fergus

Talent Management

$15

n/m

Octopus Ventures

Jun-22

Go1

Talent Management

$100

$1,900

Five Sigma

Jun-22

Guild

Talent Management

$139

$4,260

Wellington Management

Jun-22

HourWork

Core HR

$3

n/m

MassMutual Catalyst Fund

Jun-22

Odilio

Talent Management

$63

n/m

Bregal Milestone

Sources: PitchBook, HRTECHFeed

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Index Ventures

Greenoaks Capital Partners

HCM VENTURE CAPITAL ACTIVITY HVA’S Q2 2022 HCM QUARTERLY REPORT

LATE-STAGE VENTURE CAPITAL (CONT.) Deal Date

Company Name

Broad Category

Deal Size ($M)

Pre-Money Valuation ($M)

Lead/Sole Investors

May-22

Florence

Core HR

$35

n/m

AXA Venture Partners

May-22

Humi

Core HR

$24

n/m

Kensington Capital Partners

May-22

Velocity Global

Core HR

$400

n/m

Elridge & Norwest Venture Partners

May-22

Torch

Talent Management

$40

$300

137 Ventures

May-22

Bravado

Talent Acquisition

$26

$150

Tiger Global

May-22

Fetcher

Talent Acquisition

$27

$84

Tola Capital

May-22

Club Employes

Core HR

$7

n/m

MAIF Avenir

May-22

LeHibou

Talent Acquisition

$6

n/m

Ring Capital

May-22

Aliro

Talent Acquisition

N/A

n/m

Sterling Partners

May-22

Mathison

Talent Acquisition

$25

$53

F-Prime Capital

May-22

Deel

Core HR

$50

$1,205

May-22

WizeHire

Talent Acquisition

$30

$230

Tiger Global

May-22

Certn

Talent Acquisition

$50

n/m

B Capital Group

May-22

Rise Up

Talent Management

$32

n/m

Connected Capital, MAIF Avenir & Impact Partners

May-22

Valence

Talent Management

$25

n/m

Insight Partners

Apr-22

Multiverse

Talent Management

$220

$1,480

Apr-22

Oyster

Core HR

$150

$900

Apr-22

Clipboard Health

Talent Acquisition

$30

$1,270

Apr-22

Beqom

Core HR

$300

n/m

Sumeru Equity Partners

Apr-22

Remote

Talent Acquisition

$300

$2,700

Softbank Vision Fund 2

Emerson Collective

Lightspeed Venture Partners Georgian Sequoia Capital, Muse Capital & Precursor Ventures

Q2 Venture Funding Summary Hiring Tools Learning Workforce Management HRIS Compensation and Benefits Leadership Development Payroll Healthcare Staffing Sourcing Assessments Wellness Pre-Employment Screening Employee Engagement Performance Management Talent Analytics

$22

$105 $93 $82 $74 $74 $66 $63

$227

Sources: PitchBook, HRTECHFeed

12

$355

$498 $469

$590 $552

$695

SUB-SECTOR SPOTLIGHT: WORKFORCE MANAGEMENT HVA’S Q2 2022 HCM QUARTERLY REPORT The Workforce Management sector is set to outpace 2021 in terms of deal volume this year. The pandemic and the tight labor market that followed were the main catalysts for the sector’s growth and forced employers to improve the systems for managing employees. Increasing onboarding efficiencies along with increasing visibility into employee compensation are two of the main areas with the most activity. In such a competitive labor market, companies must pick up efficiencies when available, like onboarding new employees quickly. In addition, compensation management tools are increasingly prevalent as employers fight for talent. In H1 2022, there were 13 M&A transactions within the workforce management space as opposed to 17 M&A deals in all of 2021.

Onboarding

Compliance

Scheduling

Time & Attendance

Performance Management

Workforce Management M&A Deal Count 20

17

17 13

15 10 5 0

4

2018

Compensation

5

2019

2020

Payroll & Benefits

2021 YTD 2022

Offboarding

Onboarding Efficiencies: As mentioned earlier in this report, removing obstacles to onboarding is a top priority for employers in a strong and competitive labor market. Companies are extending the focus on efficient talent acquisition through the onboarding process by acquiring solutions that streamline their efforts. For example, candidate sourcing platform Worc acquired onboarding provider Hrestart. Moreover, one of the largest credit bureaus in the US Equifax acquired platform for streamlined onboarding Efficient Hire. On the venture side, companies within the onboarding space have raised over $460M YTD 2022. Remote team management platform that facilitates onboarding and offboarding Firstbase raised a $50M Series B led by Kleiner Perkins at a $300M pre-money valuation. Similarly, provider of HR software including payroll, benefits, and onboarding Employment Hero raised $157M in Series F funding led by Seek at a $761M pre-money valuation.

Interestingly, the company also acquired workforce management and payroll platform Keypay in February 2022.

Compensation Management: Companies are leveraging compensation management software to attract and retain top talent. Offering fair and attractive salaries becomes increasingly difficult when dealing with geographically dispersed teams. Benchmarking tools gauge compensation by role and region and help companies stay competitive by offering compensation based on industry standards and cost of living. Developer of compensation management platform Pave raised a $100M Series C led by Index Ventures at a $1.5B pre-money valuation. Four months after the company’s raise, they acquired real-time compensation benchmarking platform AdvancedHR. Similarly, professional network for B2B sales Bravado raised $26M in Series B funding led by Tiger Global and subsequently acquired compensation data platform for sales people CompGauge. Compensation management helps with employee acquisition and retention for employers but also provides employees with a clear picture of the relationship between performance and compensation. In Q1 2022, employee compensation management platform Beqom raised a $300M late-stage round led by Sumeru Equity Partners.

Not so long ago, workforce management tools were seen as a commodity. The continued tight labor market has both employers and employees demanding top-of-the-line solutions to manage and retain talent. With capital infusion and consolidation, technology innovation has made way for efficiencies and entirely new offerings. The macro tailwinds suggest a continued emphasis going forward.

13

HCM EXPERTISE HVA’S Q2 2022 HCM QUARTERLY REPORT

Acquired by

Acquired by

Received an Investment from

Invested in

Acquired by

Acquired by

Acquired by

Acquired by

(Non-Leader Assessment Division)

Acquired by

Acquired by

Received an Investment from

Acquired by

Acquired by

Acquired by

Received an Investment from

UPCOMING EVENT HR Tech 2022 on September 13th – 16th in Las Vegas, NV Join us for the industry’s leading event that benefits HR and IT professionals from businesses of all sizes, all industries and across the globe!

If you or colleagues are also attending, we would appreciate the opportunity to connect! Email us to setup a meeting with Carolyn or Nick.

HUMAN CAPITAL MANAGEMENT TEAM

Carolyn Mathis PARTNER

Call us: 904 285 4278

Margaret McCormick

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VICE PRESIDENT

ASSOCIATE

Email us: vision@hvadvisors.com

14

Bernard Neret ANALYST

Visit us: Harborviewadvisors.com

HVA’S Q2 2022 HCM QUARTERLY REPORT

The material in this report is for information purposes only and is not intended to be relied upon as financial, accounting, tax, legal or other professional advice. This report does not constitute and should not be construed as soliciting or offering any investment or other transaction, identifying securities for you to purchase or offer to purchase, or recommending the acquisition or disposition of any investment. Harbor View Advisors does not guarantee the accuracy or reliability of any data provided from third party resources. Although we endeavor to provide accurate information from third party sources, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.