Raising Finance

LinkedIn and Pinterest investor backs UK HR software firm with $7.5m

3 min read

07 June 2016

Former deputy editor

London-based Hibob, an SME-centric HR platform, has secured a $7.5m seed investment led by Silicon Valley venture capital firm Bessemer Venture Partners.

The VC firm has previously injected funding into LinkedIn, Pinterest and Skype, while UK-based LocalGlobe – an early backer of Citymapper and Zoopla – and angel investors also contributed to the round.

Hibob describes itself as “people management platform” and promises to reduce churn and enhance staff engagement for its SME partners. The capital will be used to market the business as “the go-to platform for modern businesses that care about their employees”.

Currently, the cloud-based service works on an invite-only basis, which makes its investment – “one of UK’s largest ever seed rounds” – even more significant. Hibob says it can save firms almost two months of HR and admin work annually.

The company backed up its efficiency claims by noting that 90 per cent of those looking after HR rely on spreadsheets for daily tasks. To that end, Hibob says its data-based design will provide SMEs the chance to make informed decisions on employee perks and so on.

Andy Bellass, co-founder of hibob, said: “As pressure mounts on SMEs to get auto-enrolment sorted, this is the perfect time for businesses to get smarter on how they manage their people overall.”

Bellas added that he and his co-founders believed the people management process had “stagnated” while other business procedures had evolved, which prompted them to set out on changing the marketplace.

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“As well as being a powerful admin and management tool, hibob has also been designed to use a company’s data to define and administer all a company’s need when it comes to pensions and benefit,” said Ronni Zehavi, Hibob CEO.

“It’s the combination of these two elements coupled with a platform that’s easy to use and feels incredibly human that is cutting through with our customers.”

The Ace Hotel, Mother London, Nexus and Kano are among the 100 businesses currently using Hibob.

Mother London partner Andy Medd said the team is able to know staff better with Hibob, tailoring offerings accordingly “to make sure we foster a great culture”.

“With Hibob we’ve finally seen some movement in creating a user friendly HR platform, that looks great and doesn’t waste our time with convoluted processes and design that feels like it’s from the 80s,” he concluded.

Uber has offered entrepreneurs the chance for an in-car pitch to investors, which could see funding and a meeting with CEO Travis Kalanick.