Some investors are attempting to double down on prior bets as many firms struggle to raise new funding or reduce expenses. A new $200 million investment for HR startup Personio, valued at $8.5 billion, was led by San Francisco-based venture capital firm Greenoaks Capital.
Personio, which creates HR software for small European businesses, raised $270 million in Series E funding in October with the unique pre-emptive investment. The transaction also indicates a softening in multiples for rapidly expanding businesses like Personio, a company based in Munich that has doubled revenues since its last financing. According to reports, other European unicorns like Klarna are looking for new funding at a valuation of just a third of the $46 billion it reached last year.
"We had the feeling that now was a good time with everything going on to prop up our balance sheet and be able to continue to make sensible investments over the coming years and make the right decisions for the business," says Renner.
Hanno Renner, co-founder and CEO of Personio, claims that while the additional funds were not required, "piling" cash on the company's balance sheet will help future growth and acquisitions. In May, the startup purchased Back, a business with offices in Berlin that automates routine payroll and leave questions for workers.
"What really changed there was much more focus on the fundamentals like sales, sustainability, and the efficiency of the business," says Renner. "We were always strong on that, but people didn't care as much in the last couple of years and always cared about growth."
For assistance with automating common HR operations like hiring, payroll, and performance reviews, Personio charges small European businesses about $190 per month. Since the Ukraine War triggered a Sharp Sell-Off in Public Markets, Particularly Tech Stocks, Renner claims that recurring revenue from the six-year-old startup's 6,000 customers had played a significant part in negotiations with investors.
About Personio
For small and medium-sized businesses, Personio is the all-in-one HR software. The goal of Personio, a company with offices in Munich, Madrid, London, Barcelona, Dublin, Amsterdam, and Berlin, is to make HR procedures as clear and effective as possible so that HR can concentrate on what's most important: people and strategy. The Personio solution supports the fundamental HR procedures that every firm must carry out, including payroll, recruiting and human resources. More than 6,000 clients use Personio in more than 80 nations.
Personio introduced People Workflow Automation, a new subcategory of HR software, in October 2021. Personio is currently valued at $8.5 billion, making us one of the most valuable startups in Europe and one of the most valuable HR software firms, thanks to a preemptive second Series E financing of $200 million. Their goals are to build the top HR platform and become the leading tech employer on the continent.
About Greenoaks
Greenoaks is a global investment company that was founded in 2012 and makes focused, long-term investments in businesses that rely on technology. The company supports generational founders early on in their careers, forming relationships that last for decades. In the US, Greenoaks oversaw investments in category-defining firms like Discord, Brex, and Airtable; in South Korea, Coupang; and in Latin America, Kavak.
