Xing Liu, partner at Sequoia Capital, right, speaks as Anna Fang, partner and chief executive officer of ZhenFund, left, and David Chao, co-founder and general partner of DCM Ventures, listen during the Rise conference in Hong Kong, China, on Tuesday, May (Photo : Getty Images)
According to the 2016 Enterprise Service Venture Captial report, Venture Capital investors favor to target the human resources sector in the field of enterprise service in 2016. Venture capitalists invested to a total of 436 investments on enterprise services, 72 of which are from the human resources sector.
The report was released by ITjuzi, a company that provides data on tech investments through its website. The company released it at a summit on Venture Capital investment in the enterprise service on Dec. 21.
The report also indicated that the human resources sector rose 50 percent year-on-year to 3.6 billion yuan. It also stated that about 24 percent of new HR-related companies received Venture Capital investments in 2016. This is higher than the enterprise service field overall number of 16 percent.
The demand for Software as a Service increases as more start-up companies emerge and focus on a flat organization structure This is a software distribution model in which a third-party provider hosts applications and makes it available to customers over the internet.
Xin Xiaode, the founder of the job-hunting company Hunteron, said: "The human resources sector faces a large rigid demand, at both before-and after offer stages, that the service supply is not able to meet. This business is definitely profitable and we don't need to make money a priority."
ITjuzi also unvieled its report regarding China's 100 Most Valuable Startups in the Enterprise Service Field in 2016 on Dec. 21. It indicates that 17 percent of the list are made up of human resources enterprises, two companies of which surpassed 5 billion yuan in value.
As the human resources sector continues to grow and offers great opportunities, it also faces bigger and more complicated demand. To sustain the growing sector, more service providers will need to be available in the upcoming years.
"The key lies on service continuity and efficiency", said Hu Jianglong, founder of the human resource outsourcing service company Microseer.
