HR Tech Firm Lattice Nets $175 Million to Grow People Management Products
The Series F funding round from investor Elad Gil and venture capital firms Thrive Capital, Tiger Global and Dragoneer, values the company at $3 billion, and comes just 10 months after the company closed a $60 million Series E round. Lattice has received total funding of more than $330 million since its founding in 2013.
“This new funding is a vote of confidence in Lattice’s belief that the world is ready for a new generation of people management products that put employees’ interests first,” said Lattice CEO Jack Altman in a press release statement.
He centered the funding announcement in the context of the ongoing Great Resignation, which saw a record 4.5 million US workers quit their jobs in November 2021.
“Employees have more choice than ever before, and they’re exercising that agency to choose jobs that meet their expectations for growth and fulfillment," Altman said. "Companies that embrace this and build their people systems with the success of their employees at the center are the ones that will thrive in the new world of work.”
Lattice specializes in software to manage performance, assess employee engagement, gather real-time feedback, keep track of OKRs and goals and facilitate one-on-one meetings. The company's approach to connecting these functions is what has led to its rapid growth, said investor Elad Gil in a press statement.
“We've seen a few broad trends come together in recent years — the rise of remote work, the evolution of the role of HR — that have fueled the HR market,” said Gil, a former Twitter and Google executive, who has invested in or advised tech companies including Airbnb, Coinbase, Instacart, Pinterest and Square.
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Lattice has 470 employees based out of its corporate headquarters in California and offices in New York and London. According to company statistics, Lattice has more than 3,500 clients including fellow tech firms Slack, Reddit and Asana.
The HR tech market has been white hot in the past year, with venture capital firms handing out a record $16 billion in 2021, more than triple the 2019 record of $5 billion. Q3 2021 alone saw investment of $6 billion in firms eager to transform the workplace.
Large HR tech deals in 2021 went to Articulate, the online training platform that scored $1.5 billion in a single funding round in July, bringing its valuation to $3.75 billion. Workforce management platform Papaya raised $250 million to reach a valuation of $3.7 billion. Andela, a specialist in remote engineering talent, received $200 million, bringing its valuation to $1.5 billion, and employee mental healthcare company SpringHealth secured $190 million, bringing its total valuation to $2 billion.
It’s a big change from a decade ago, when HR tech was treated like a "backwater" tech category by investors, HR industry analyst Josh Bersin told Reworked in November 2021. “Now it is recession proof," he said. "Companies need HR technology regardless of the economy.”
Based on Lattice's announcement, 2022 looks set to continue the trend.
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About the Author
Mike Prokopeak is editor in chief at Reworked, the premier publication covering the r/evolution of work, where he leads content development focused on the transformation of the workplace.