Signals

09/09/2026

At the Federal level, the unpredictability and rapid pace of the Trump administration’s policy announcements have been unsettling for investors and companies. Tighter immigration policies and unprecedented intervention in the affairs of universities are contributing to the unease. However, the advent of Workforce Pell – a student loan supporting shorter courses – is potentially a positive step to building more vocational training. The heterogeneity of state-level policies also makes for a mixed picture, although many states are seeking to promote skills-based hiring and apprenticeships (note that “apprenticeships” is a term which means different things in different countries). However, the roles of specialist philanthropies, foundations and impact investors remain important across the ecosystem, as many are continuing to dedicate effort and funding towards better training and employment outcomes. “Hyperscaler” Big Tech companies are also starting to provide funding for reskilling and upskilling, not least as they attempt to ensure they are able to build data centres and attempt to bolster their reputations (see below). Europe’s universities and employers may benefit from those seeking alternative places to work and study.

The “techlash” has quickly become a major issue for politicians. At school level we have recently seen the introduction of stringent restrictions on the use of all digital technology in schools, notably in New York City and Los Angeles; the construction of data centres has become a lightning rod for fears about AI taking jobs and the dominance of technology companies. There is a major risk that evidence-based assessments of where technology can make a real difference to learning and employment get lost in polarized rhetoric, and genuine potential for impact is lost.

16/07/2026

The US remains an important source of experimentation in workforce development, combining public funding initiatives, philanthropic investment and private-sector innovation. New approaches to funding short-form vocational learning, alongside ambitious efforts to support workforce transitions, are creating fresh opportunities for providers and investors alike.

At the same time, developments in AI policy are highlighting new questions around security, resilience and access to advanced technologies. Organisations are increasingly considering how to balance innovation with concerns around cyber security, infrastructure and long-term dependency on a small number of technology providers.

The scale of investment and experimentation continues to make the US a valuable indicator of future trends that may influence workforce and skills markets internationally.

03/12/2025

At the Federal level, the unpredictability and rapid pace of the Trump administration’s policy announcements have been unsettling for investors and companies. Tighter immigration policies and unprecedented intervention in the affairs of universities are contributing to the unease. The heterogeneity of state-level policies makes for a mixed picture, although many states are seeking to promote skills-based hiring.

However, the roles of specialist philanthropies, foundations and impact investors remain important across the ecosystem, as many are continuing to dedicate effort and funding towards better training and employment outcomes. Europe’s universities and employers may benefit from those seeking alternative places to work and study.

09/09/2026

European leaders remain deeply engaged with changes in the economic landscape across the continent, not least their effects on employment. Germany’s automotive sector is a particular area of concern, as Chinese competitors start to erode market share across the world. The “Made in Europe” strategy sits alongside plans for the European Skills Guarantee, whilst individual countries continue with initiatives to evolve their economies in the face of change. Some upskilling and reskilling organisations and investors are benefiting from this challenging context.

A further concern – shared with the UK and many other governments – is the dominance of US companies in the AI ecosystem. The US Federal government’s decision to cut off access to Anthropic’s Fable AI model in mid-2026 in the light of cybersecurity concerns was a stark illustration of dependence. Europe is trying to chart a difficult path between accessing the benefits of cutting-edge AI whilst regulating it and attempting to ensure there are alternatives.

Q2 2026 HR deals

Whilst deal volumes are down from the heady days of the pandemic, 2025 saw some outstanding deals for European Future of Work investors, notably the unicorn exit of Sana Labs to Workday. 2026 has similarly seen major rounds, for example Multiverse’s substantial fundraise. Achieve Partners’ raise of a $450m fund in the US was also indicative of continuing investor interest. This reflects the Future of Work as a site of ongoing competition: a three-way battle is joined between incumbent enterprise players (who have client inertia, data and industry expertise), lots of specialist challenger AI natives (who can move fast without legacy) and generic hyperscalers (whose models may reach levels of capability which commoditize the others). There is little doubt that the transition through the “Fourth Industrial Revolution” presents substantial opportunity as governments, employers and individual workers have an essential need to maintain their competitive advantage: they need to fill skills gaps and ensure that their human capital remains productive.

However, some systemic issues remain for investors:

• Customer acquisition through any or all channels (B2B, B2G and B2C) is often difficult and slow, save where there are clear, durable funding and procurement structures. For example, Private Equity firms have seen opportunity in UK Apprenticeship Providers.
• The breakneck speed of AI development makes it hard to judge what is sustainably defensible. Tools such as Claude Code are also having an impact here: agentic AI only raises the stakes further. Early 2026 saw the coining of the word “SAASpocalypse” to describe investors’ concerns over these issues, and companies in the Future of Work sector were dramatically affected, notably Workday (it has since recovered). Currently, some combination of proprietary structured data, deep integration into sector-specific specialist workflow, and a delightful user experience seem the best defence: incumbents such as SAP and Workday are also arguing that these pre-existing assets also allow them to create better, more precise and comprehensive agentic solutions in much shorter timescales.

These arguably favour sector specialist investors such as Ufi.

16/07/2026

Investment activity continues to focus on technologies that help people access jobs, develop skills and improve workforce performance. Hiring, skills assessment, workforce management and career navigation remain particularly active areas of innovation.

One notable theme is the continued success of specialist providers. Businesses that combine technology with deep expertise in a sector, occupation or workforce challenge continue to attract investor attention. This includes solutions serving healthcare, frontline workers, skilled trades and other markets where generic tools often struggle to deliver meaningful outcomes.

Across the market, there is growing interest in businesses that can demonstrate clear links between skills development, employment outcomes and productivity gains.

03/12/2025

HR Tech deals

Whilst deal volumes are down from the heady days of the pandemic, 2025 has seen some outstanding deals for European Future of Work investors, notably the unicorn exit of Sana Labs to Workday. This reflects the Future of Work as a site of ongoing competition for incumbent enterprise companies, the “hyperscaler” Big Tech companies, and innovative new entrants offering “point” solutions.

There is little doubt that the transition through the “Fourth Industrial Revolution” presents substantial opportunity as governments, employers and individual workers have an essential need to maintain their competitive advantage: they need to fill skills gaps and ensure that their human capital remains productive.

However, some systemic issues remain for investors:

• Customer acquisition through any or all channels (B2B, B2G and B2C) is often difficult and slow, save where there are clear, durable funding and procurement structures. For example, Private Equity firms have seen opportunity in UK Apprenticeship Providers.
• The breakneck speed of AI development makes it hard to judge what is sustainably defensible. Currently, proprietary structured data seems to be held up as the best defence.

These arguably favour sector specialist investors such as Ufi Ventures.

09/09/2026

The effect of AI on work is much debated and has become the site of frenzied rhetoric, not least as Anthropic and OpenAI approach public share offerings. It is at least clear that much is unclear: whilst the pessimistic narrative of imminent substantial unemployment is seductively simple, the reality is considerably more complex. Sizeable vested interests are at play in the widespread storytelling.

There is some limited evidence that coding jobs and customer service are being affected, but very little elsewhere. Some analysis asserts that organisations’ reasons for layoffs and hiring reductions are due to the high level of uncertainty across global economies due to wars, tariffs and economic fragility: AI is a convenient rhetorical scapegoat.

AI is not yet having a dramatic effect on productivity, as it likely requires careful re-engineering of work processes to yield the best results. The introduction of AI also requires sensitivity to the culture and fears of employees, or it may backfire and materially reduce company performance. Some claim that LLM-based AI is reaching its limits; others that new models will continue to improve capabilities. Many assert that new jobs will emerge over time, as in other Industrial Revolutions.

Universities, colleges, training providers and schools are all having to review their approaches to teaching, learning and assessment as AI allows students invisibly to cheat.

The “hyperscalers” and their investments in and around the Future of Work and education are nevertheless having a dramatic effect on the provider landscape. Tools such as Google’s Learn Your Way and Vantage are likely to commoditize the development of learning experiences, particularly for relatively autonomous adult learners. Given the power of tools such as Claude CoWork and ChatGPT Codex, it has never been easier to devise and develop innovative workflows for internal productivity or to solve niche problems. This presents opportunity as well as threat and risk, particularly for early stage investors.

03/12/2025

The conversation about AI and work has intensified, but the reality remains nuanced. Predictions about job losses, productivity gains and labour market disruption vary widely, while evidence of how AI is affecting employment remains mixed and highly context-dependent.

What is becoming clearer is that successful adoption depends less on the technology itself and more on implementation. Organisations that redesign processes thoughtfully, support users effectively and align technology with real-world needs are likely to capture the greatest value.

Meanwhile, competition is accelerating between established providers, AI-native challengers and large technology platforms. Agentic AI is emerging as a major battleground, particularly in workforce management, hiring, learning and productivity tools. The challenge for investors is to distinguish enduring value from short-term hype and identify businesses capable of building sustainable advantages in a rapidly changing market.

03/12/2025

The effect of AI on work is much debated. It is at least clear that much is unclear: whilst the pessimistic narrative of imminent substantial unemployment is seductively simple, the reality is considerably more complex.

AI is not yet having a dramatic effect on productivity, as it likely requires careful re-engineering of work processes to yield the best results. Some claim that LLM-based AI is reaching its limits; others that new models will continue to improve capabilities. Many assert that new jobs will emerge over time, as in other Industrial Revolutions.

The “hyperscalers” and their investments in and around the Future of Work are nevertheless having a dramatic effect on the provider landscape. Tools such as Google’s Learn Your Way are likely to commoditise the development of learning experiences, particularly for relatively autonomous adult learners. It has never been easier to devise and develop innovative workflows for internal productivity or to solve niche problems.

Hiring of entry-level staff seems to be down, notably in “white collar” work, but it is unclear how much this is caused by AI and how much by the geopolitical uncertainties which characterise the 2020s.