Battery Ventures leads $17.5m round for Hibob

Kenny Wastell
25 April 2017

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US venture capital firm Battery Ventures has led a $17.5m funding round for Hibob, a British developer of cloud-based HR software.

Eight Roads Ventures Europe and Arbor Ventures also took part in the round, alongside existing investors Bessemer Venture Partners and LocalGlobe.

The fresh capital will enable the company to invest in product development and expand its sales operations. The business is looking to increase its headcount from 50 to 80 by the end of the year and will also undertake an international expansion strategy. The company plans to enter the US and Asia-Pacific regions and bolster its Israeli presence.

The investment is Battery's second European deal of 2017, according to unquote" data. In February it joined Holtzbrinck Ventures to collectively provide a $4.2m seed funding round for Berlin-based fintech startup Zeitgold.

Previous funding
Bessemer led a $7.5m seed funding round for Hibob in June 2016. London-based VC LocalGlobe, founded by former Index Ventures general partner Saul Klein, also took part in the round, alongside various angel investors.

Company
Headquartered in London and founded in September 2015, Hibob develops HR software specifically targeting the SME market. The cloud-based platform enables companies to streamline and personalise processes including staff pensions, medical insurance, benefits, holiday booking, document sharing and payroll.

Hibob targets companies with 40-150 employees, where it says 90% of businesses rely on spreadsheets for their HR purposes. Its customers include Wieden+Kennedy and Receipt Bank.

Hibob had a headcount of 50 in the UK and Israel, up from 40 at the time of Bessemer and LocalGlobe's initial investment.

People
Battery Ventures – Scott Tobin (general partner).
Eight Roads Ventures Europe – David Hebel (managing partner).
Arbor Ventures – Melissa Guzy (partner).
Bessemer Venture Partners – Adam Fisher (partner).
LocalGlobe – Saul Klein (partner).
Hibob – Ronni Zehavi (CEO).