12th March 2026
What really drives valuation in Human Capital Management (HCM) software? And how can founders position their businesses to grow and realise their full potential in an evolving HR technology market?
These are common questions for founders building HCM platforms, but clear answers can be difficult to find. Public benchmarks rarely reflect the realities of software businesses in this category, and deal multiples are often opaque.
To help address this, we have published Human Capital Management Software: A Founder’s Guide to Growth & Maximising Valuation, drawing on our experience appraising and working with HCM software companies such as Zest, Questionmark and Kallidus.
The report explores:
- The key financial metrics that most influence HCM software valuations, including ARR growth, gross margin, and gross and net revenue retention.
- The characteristics shared by many of the most successful HCM software companies, and how founders can strengthen scalability and defensibility.
- How developments such as AI and data-led insights are beginning to reshape the HCM software landscape and influence how investors assess long-term value.
It also includes a case study on Zest, the UK employee benefits platform, where focused strategic initiatives helped drive strong ARR growth and support a successful exit.
Download the report here.
