When the tech IPO market reopens, keep an eye out for HR unicorns

The back half of 2023 is expected to unlock the tech IPO market. Whether the public offering window opens later this year or in early 2024, TechCrunch+ expects to see some familiar names in the mix of the HR tech space.

And maybe some less familiar names.

Regular TechCrunch readers are likely familiar with HR tech unicorns like Rippling, Gusto, and Deel, late-stage startups with valuations around or above the $10 billion mark.

Velocity Global is another name to include in the starter cluster. Worth a few billion dollars, its recent growth and profitability means that when considering potential exits in the HR tech market, it should be on the list.

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Even funnier, Velocity Global CEO Ben Wright recently shared a handful of financial data about his company with TechCrunch+. The new numbers give us even more perspective on the growth and value of startups helping other companies manage payroll.

There are nuances in the HR technology space. First, the line between managing payroll and hiring workers: while Deel and Velocity Global seem more focused on being Employers of Record (EoR) for national companies looking to hire internationally, Rippling and Gusto are best known for handling payroll for clients’ domestic workforce. . But don’t try to group the four companies into two separate groups; Rippling also offers clients the opportunity to be their co-employer, and Rippling and Gusto both offer support for international staff.

In short, while the four companies may have started out with a particular focus and geographic focus, they overlap more over time as they expand their product lines to support more use cases. customers and, we assume, to grow their revenue footprint with existing customers. .

As we wait for a brave company to first IPO, let’s discuss Velocity Global’s numbers and valuation and contrast with what we know about some of its private market competitors. For you number-heads, we’re going to end with a question about the company’s valuation that makes the most sense. Ready? To work.