• Czech HRTech Sloneek attracts EUR 3.6M
• The startup’s app employs proprietary AI to automate HR processes and liberate HR workers
• The new investment will accelerate product development and enable Sloneek’s expansion to Italy

This September, Czech HR automation startup Sloneek raised its Late Seed round of EUR 3.6M. The lead investor of the round is the well-known Czech VC fund Purple Ventures (invested in Hedepy, among others), joined by Venture to Future Fund and Sloneek’s loyal repeat investor Vision Ventures.

Beginnings and Milestones

Sloneek began in 2019 as a simple idea of digitizing the crazy agenda of HR people by Filip Lukac and Milan Rataj. The initial ambition of the first version of the HR app was quite humble and focused solely on absence / attendance management. Nevertheless, it marked the company’s early entry into the HR tech space.

‘Sloneek’ is the Czech diminutive of the word ‘elephant’ – symbolizing strength, memory, and the comprehensive nature of the HR solutions provided. ‘We wanted to find a name that would appeal to the primary target group – women, HR manager. And because women like animals, we looked for one that expressed everything our system stands for – size, agility, strength and intelligence. And the closest we came was Elephant,’ Mr Rataj recalls.

The startup secured its first Pre-Seed investment of EUR 348K from Vision Ventures in 2020, and in 2022, the famous Czech VC fund Presto Ventures (invested in Adam, for example) led Sloneek’s Seed round of EUR 850K.

‘From the beginning, the Sloneek team brought together talented developers, HR professionals, and business experts. This strong foundation allowed them to build seamless digital products that solve customer problems directly, achieving a product-market fit early on. They’ve also been very effective at acquiring clients, reflected in an impressive NDR – Net Dollar Retention – rate of approximately 130%,’ Presto Ventures associate Matej Luhový tells ITKeyMedia.

AI for HR

The 2022 investment fueled the AI integration in Sloneek’s product and marked the company’s vision shift to AI-First HR. More specifically, Sloneek integrated OpenAI technology into its platform, transforming its vision from being HR-first to an AI-First HR system.

‘​​How much time do you think a recruiter has to work with people? A little. How many bosses have an insight into their people’s true abilities and potential? Few. We set out to buy them that time, and at the same time teach them how to work better and more effectively with the data about the people in the company. And that’s Sloneek – a system, an app that helps with the dull administrative work and at the same time helps to capture and process data over which management can make better decisions,’ Mr Rataj explains.

In addition to standard HR platform features like digitizing paperwork, managing recruitment, and streamlining onboarding, Sloneek offers advanced tools for strategic transformation of the way companies handle people management. They provide leadership with data-driven insights into team and individual performance, making it easier to spot employees with untapped potential, identify those at risk of leaving due to limited personal growth, or address long-term inefficiencies.

For HR managers, Sloneek re-focuses attention on the strategic aspects of employee development, enhancing productivity, satisfaction, and loyalty. By automating routine administrative tasks with AI, the platform allows HR professionals to concentrate on more impactful work. Moreover, rather than replacing HR staff, Sloneek empowers them by eliminating repetitive tasks prone to error.

‘Sloneek allows HR professionals to focus on developing people and leave administrative tasks to technology, thanks to its AI tools’, Purple Ventures’ partner Jan Davídek says.

Presto Ventures’ managing partner and founder Přemysl Rubeš notes how rapidly Sloneek has grown since the previous round of investment, thanks to a superb product and team. ‘They’re keeping their customer acquisition costs low and retention rates high. More and more companies are now transitioning to hybrid work models, which comes with its own challenges in terms of employee onboarding, day-to-day operations, and long-term engagement. Modern companies already view Sloneek as an essential part of their SaaS management stack,’ Mr Rubeš adds.

Special Attention to New Generations of Employees

According to Mr Lukac, over half of the productive workforce now consists of Millennials and Gen Z. This presents opportunities for more efficient work, but also risks if companies fail to adapt and manage this change. More specifically, just like any other generation, these last two also carry their own differences and specificities that need to be learned. .

‘Stop seeing people as cost items, start seeing them as investment opportunities, with all that entails. Reviewing where I invest, why I invest, why and how I expect the investment to pay off, tracking developments during the investment, re-evaluating the strategy and strengthening my investment position where it makes sense.  And for that you need data. With the ability to quickly analyze it for quick decision making. And that’s something that’s lacking in companies today,’ Mr Rataj comments.

He points out that neither of the mentioned generations have known a fatal flaw, crisis or its consequences. They were born into relative prosperity and peace. Mr Rataj strongly believes that their key features are the ‘option of choice’ and ‘instant approach to everything.’

‘How do you behave when you can’t get something? You move on, you look where you can get it. And this approach, which not only in the new generations we know thanks to the e-shops, is also happening when choosing a job, a company, an organization where I want to be. How do you behave when you can’t get something? You move on, you look where you can get it. And this approach, which not only in the new generations we know thanks to the e-shops, is also happening when choosing a job, a company, an organization where I want to be,’ Mr Rataj further explains.

‘You only have to dig into any domestic or global research on Generations Y and Z to see that it’s having the opportunity to work on meaningful projects, to influence what a company does, to want to push themselves, to develop – and this doesn’t just mean finishing a package of paid courses, to get a sense of trust, of being valued. And then it stops being about money, it stops being about loyalty. I think that’s one of the main reasons why there are so many young people around startups, by the way,’ he continues.

Sloneek is already present in dozens of international markets across Europe and even in the US. Its notable clients include such household names as Lindt, Volvo, and more.

Further Development and Expansion

Raising EUR 3.6M from Purple Ventures, Venture to Future Fund, and Vision Ventures marks another major milestone for Sloneek aims to use this investment to enhance its technology and strengthen its position in Western Europe with Italy being the first stop.

‘While working with Sloneek closely during the investment process, we experienced firsthand what capable management, a refined business plan, and a clear market-entry strategy look like. We’re convinced that Sloneek’s product will succeed with new customers in international markets. From our experienced perspective, they have a bright future ahead,’ Venture to Future Fund’s vice chairman and investment manager Martin Banský shares.

In terms of product development Sloneek aims to bolster the data pipeline. As for the Italian expansion, it will presuppose not only accelerated sales and marketing effort, but also setting up a local team. This initiative is aimed at addressing the unique needs of the Italian HR landscape, offering tailored solutions while enhancing customer support and localized expertise. The expansion marks an important step in Sloneek’s growth as an international HR tech provider.

According to Mr Lukac, Sloneek’s interest in this market has two main reasons. On the one hand, local companies have long been struggling with a talent shortage – something the government is trying to reverse with various incentives intended to bring people back to Italy. On the other hand, there is a thriving startup scene which has been successful in developing a value-added economy.

The team believes that once Sloneek’s solution proves itself in Italy, the company can use this experience to expand into other Western markets. ‘We would like to become the pioneers in the automation of the HR processes throughout the AI and we are investing every inch of our effort to do so,’ Mr Rataj concludes.