From Seed to Series A: The Marketing Essentials

by Richard Blamire | Jan 31, 2025 | Insights

According to research conducted by WorkTech, $4.8bn was invested in HR & Recruitment technologies globally in 2023 through 254 deals*. Whilst notably lower than the frenzied investment in 2021 and H1 2022, WorkTech evidenced that 2023 investment levels were broadly similar to 2018-2020 levels.

By the end of Q3 2024, WorkTech reported that $3.9bn had been similarly invested through 185 deals**:

 Source: WorkTech, 2024 Q3 Global WorkTech VC Update**

As to how the year ends, we will have to wait and see – but investment levels in Q3 2024 ($1.7bn through 71 deals) were buoyant compared to Q3 2023**.

By December 2024, ThinkinCircles had identified more than 200 HR & Recruitment technology companies that had received funding in 2024. The particular area of focus of our research is on the journey from Seed to Series A – and the critical role that marketing plays in success. As, we evidence, however, access to and affordability of strategic marketing expertise present challenges for start-up companies.

As part of this research, we mapped 35 HR and Recruitment Technology (RecTech) companies who had secured Series A funding in 2024:

• A total of $455.8 was raised by these companies – an average of $13.0m per Series A funding.
• 60% (21) had been founded since the onset of the global pandemic (2020).

Source: ThinkinCircles analysis of publicly available data

• The two most prevalent areas of Series A investment in 2024 were in Workforce Assistant / AI Co-Pilot and Upskilling technologies.
• There was also keen interest in global PEO / EOR / remote worker engagement solutions and Employee Engagement /Wellbeing platforms.

Source: ThinkinCircles analysis of publicly available data

• Between them, these 35 companies had a total visible workforce of 3,539 in December 2024:
  • This was an average of 101 visible workers per company.
  • Of the visible workers, 4% (159) were marketers:
    • All except one Series A funded company had dedicated marketing resource.
    • This was an average of 4.7 marketers per Series A company with dedicated marketing resource.

As such, it is clear that by the time Series A funding has been secured, the internal marketing function is quite well established. That said

• Just nine companies (26%) have a senior marketing figure in post:
  • Five companies have a CMO (incl. 1 fractional) and four have a Marketing Director.
• Several companies have senior Growth professionals in post.
  • Whilst this function often combined sales and marketing, some companies split growth marketing out as a specialism.
• What is also interesting to note is that many CMOs and Growth professionals – notably fractionals – practice exclusively within VC-backed enterprises.
• Of additional note, two companies have advisory boards with CMOs (including fractionals) on them – an additional way of bringing marketing expertise to an organisation without engaging full-time headcount.

We also explored 49 HR and RecTech companies who had receiving Seed funding in 2024:

• Eight in ten (39) had been incorporated since 2020 – and 62% (29) were incorporated in the last 3 years.
• A total of $183.2m was raised by these 49 companies – an average of $4.0m per Seed funding.

Source: ThinkinCircles analysis of publicly available data

• The two most prevalent areas of Seed investment in 2024 were in Workforce Assistant / AI co-pilot and niche online work / hiring platforms / Freelancer Management Systems (FMS).
• There was also keen interest in global PEO / EOR / remote worker engagement solutions, Employee Engagement / Wellbeing platforms and Resource Scheduling / Workforce Management tools.

Source: ThinkinCircles analysis of publicly available data

• Between them, they had a total visible workforce of 1,169:
• This was an average headcount of 24 per company.
• 6% (65) of their visible workers were marketers
  • This was an average of 1.8 per company with dedicated marketing resource.
  • Crucially, however, 14 companies have no dedicated internal marketing resource.

At this early stage, the marketing function – in companies that have dedicated resource – is sparce, with notably more generalists than specialists:

• Senior figures can be found in just 8% of 2024’s Seed-funded companies:
  • Just one has a CMO whilst 3 have a Marketing Director
• It is more typical for these companies to have a Marketing Manager as the most senior resource (found in 31%).
• Six of the companies have Brand Managers, notably focusing on establishing and maintaining partnerships.

Being thin on the ground at this critical stage in a company’s evolution is far from ideal – as, in order to scale from Seed to Series A funding, there are three aspects of marketing that organisations must simultaneously focus on:

• Producing innovative marketing to drive client acquisition:
  • Innovation is critical to enable organisations to stand out in a competitive landscape.
• Building a strong Employer Brand to attract top talent:
  • Strategic talent acquisition is crucial for product development, growth and investor confidence.
• Honing marketing strategies that will attract investors:
  • Demonstrating that the solution is addressing / creating market need. This includes:
    • Use of customer advocacy.
    • Building market authority.
  • Boosting credibility through strategic partnerships.
  • Utilising data-driven storytelling.

To do this with such limited resource – as we have evidenced is the reality within most HR & RecTech companies at Seed funding stage – is nigh-on impossible. Similarly, investment in full-time specialists in each facet of marketing requirement is also out of reach of most start-ups at this stage. As such, external support from portfolio fractional marketing specialists such as ThinkinCircles provides an agile and affordable solution to addressing the complex array of marketing requirements faced by companies seeking to move from Seed to Series A funding.

To explore how ThinkinCircles supports growth companies with fractional marketing support, let’s chat.

Footnotes:

* WorkTech, 2023 look back and 2024 look forward: https://1worktech.com/2023-look-back-and-2024-look-forward/

** WorkTech, Q3 2024 global WorkTech VC – look back, look forward: https://1worktech.com/event/live-q3-2024-global-worktech-vc-review/

The Power of Employer Branding

by Richard Blamire | Jul 19, 2024 | Insights

Employer branding is about the overall perception of your company as a great place to work and its value proposition. It is very much about communicating what working life could look like at your company and why candidates should want to work there.

A robust employer brand helps you attract high-quality candidates who resonate with your company’s values and culture. It can also help reduce recruitment costs and employee turnover.

Having a strong employer brand is vital to gaining a competitive advantage. Your employer brand is about more than just how it looks. It’s about portraying what work life at your business looks like and creating a positive image that showcases your employee value proposition to attract and retain the best talent in the job market.

To build a strong employer brand, you need expertise, creativity, and a deep understanding of your business. ThinkinCircles is here to help. Our team brings a wealth of knowledge and innovative strategies to create a compelling employer brand that improves employee engagement and boosts your bottom line.

Why does employer branding matter?

A strong employer brand can help employees feel valued, respected and motivated. It can also attract candidates who share your values and culture, which will help with employee retention in the long run.

Your employer brand should focus on celebrating and cheerleading employees through growth opportunities, team collaboration and promoting employee wellbeing.

Tell a story with your employer branding

Authentic storytelling is not just a crucial element of employer branding; it’s an opportunity for creativity and inspiration. Real stories from your employees about their experiences create a powerful and relatable narrative that can resonate with prospective employees, inspiring them to join your company.

Encourage your team to share their personal stories to give job seekers genuine insight into your company’s culture and values. This authenticity can significantly resonate with prospective employees.

Leverage your social media

Social media platforms such as LinkedIn, Facebook, and Instagram are excellent tools for employer branding. They allow you to showcase your company culture, share employee stories, and highlight job openings.

A well-crafted social media strategy can significantly enhance your brand’s visibility and attractiveness to potential employees, making it easier to attract top talent.

Why partner with ThinkinCircles

ThinkinCircles specialises in helping businesses, especially small ones, develop strong employer brands with tailored strategies. We focus on leveraging limited resources to maximise impact and understanding each business’s unique challenges and strengths to create customised plans.

At ThinkinCircles, we believe in a data-driven approach to success. We measure our impact through key indicators such as application rates, employee retention, and engagement levels. Our detailed reports on the impact of our strategies provide tangible evidence of the benefits of investing in employer branding, giving you confidence in the effectiveness of our services.

Ready to boost your employer brand?

Our team of experts brings deep industry knowledge and innovative strategies to build a unique and powerful employer brand for your business. Contact ThinkinCircles to transform your recruitment strategy.