TechWolf closes $42.7 mil Series B to ‘double down’ on AI & the US market

The HR tech sector is booming right now.

2024 has been full of mergers and acquisitions, particularly in the realm of AI. Notable examples include Cornerstone buying SkyHive and Talespin, Workday doubling down on AI with the acquisition of hiredScore, and Deel purchasing Zavvy and PaySpace in the same week.

The latest HR deals news comes from Belgium-based AI-powered skills platform TechWolf, which has just closed a $42.7 million Series B round.

TechWolf was founded out of Ghent University and Cambridge University in 2018. In 2022, it raised a €10M Series A, and two years later, it has seen 12x revenue growth.

The Series B was led by Felix Capital – SAP, ServiceNow and Workday also participated in the round. TechWolf claims this is the first time these three tech giants have invested in the same company in the same round.

Additional support for the round came from Acadian Ventures, Notion Capital, 20VC, as well as angel investors Adam Miler, Paul Melchiorre and Tudor Havriliuc.

The investors have committed that 3% of all shares to the TechWolf Foundation, a non-profit that aims to support under-represented founders, promote women in STEM and wolf sanctuaries.

Speaking exclusively to UNLEASH about the rationale behind this round, Felix Capital Partner Julien Codorniou shares that the future of work is a priority area for the investment firm; this is “reflected in our historical investments in Unmind, Travelperk, and Yoobic, as well as my own experience as a SaaS operator with Facebook Workplace”.

For Codorniou, what makes TechWolf different is that it is a “great example of software and AI having a real and positive impact on both employees and employers”.

“They not only enhance workforce management but also help companies build a resilient and skilled workforce capable of navigating future disruptions.”

Techwolf has also built a real brand, in the CHRO community, and we were pleased to witness the true customer love,” Cordorniou adds.

Standout TechWolf customers include GSK, KLM, United Airlines, MetLife, IQVIA, Virgin Media O2, bp and HSBC – this caliber of clientele, as well as the interest from HR tech giants, made the investment a “no brainer” for Codorniou.

As a result of Felix Capital’s investment, Codorniou will now join TechWolf’s Board, as will Diane Gherson, former CHRO at IBM.

Talking about the Series B, Gherson commented: “I am really passionate about the need for companies to build a skills-based organization to compete in the digital economy, which requires a robust and dynamic skills infrastructure.

“We were lucky to have the internal AI resources to build one at IBM, but as I talk with my peers, they are struggling to find that capability externally — one that can draw from the vast amount of information on people that sit in HR, financial and sales systems, as well as market reference points.

“I came across TechWolf from their excellent reputation in large sophisticated enterprises in Europe.

“And when I got to kick the tires on the technology and client process I was hugely impressed.”

A bright future for TechWolf stateside

In an exclusive interview with UNLEASH, TechWolf’s Co-Founder and CEO Andreas De Neve shares his excitement about the round.

A key reason why TechWolf raised this capital now is because of its “strong traction in the US”, and the desire to “double down there”.

Currently, 50% of TechWolf’s pipeline comes from the US, and some of the money will be used to open a new office in New York City in September 2024.

Codorniou adds that he was impressed by the HR tech company’s “commercial traction” in the US.

The funds will also be used to “double down on everything AI”, according to De Neve.

In conclusion, Codorniou shares: “TechWolf epitomizes the new wave of European software companies leading the charge in AI.

“They recognized the transformative power of AI long before the launch of ChatGPT, and have effectively harnessed it to revolutionize HR data management.

By applying AI to HR data, they are creating innovative solutions that help employees flourish at work.”

Stay tuned.