Novaworks Raises $8M Seed for ServiceNow HCM
Novaworks, an AI-native HCM operating system built on ServiceNow, has raised $8M in seed funding led by Stalwart Ventures, with participation from ServiceNow Ventures and Bell Ventures. The platform unifies people, AI agents, and processes to automate HR workflows from onboarding to offboarding. The capital will support product expansion and go-to-market efforts for total workforce management.
Agentic AI Surges in HR Tech
The funding arrives amid a wave of AI advancements in HR: Deel announced AI agents for payroll three days prior, while UKG demoed AI-led orchestration at recent conferences. Paraform also raised $40M Series B on the same day for flexible hiring. Novaworks differentiates by building natively on ServiceNow for enterprise security and agentic actions across humans and AI agents.
Legacy HCM Fails Modern Forces
Legacy HCM systems handle static employee rosters but struggle with diverse workforces including contractors, gig workers, and AI agents. Enterprises face complexity from retrofitting AI onto outdated platforms, leading to compliance risks and inefficiency. Current solutions like bolt-ons add layers without unifying processes.
Native ServiceNow Powers Agentic OS
Nova Core HCM automates transactions like benefits, payroll, and compliance on ServiceNow's platform. Nova Super Agent acts as a personalized AI concierge for employee support, enabling agentic AI to take actions with human oversight. Unlike Rippling's $1.65B-funded all-in-one for SMBs or Eightfold.ai's $397M talent focus, Novaworks targets ServiceNow users with full lifecycle orchestration.
As Kelley Steven-Waiss, CEO, noted:
"Legacy HCM systems were built for a static workforce that no longer exists."
Strategic Investors Validate Vision
Stalwart Ventures leads with conviction in AI-native foundations, joined by ServiceNow Ventures signaling platform synergy post-Moveworks acquisition. Bell Ventures adds telecom-scale expertise. This mix provides mission-aligned capital for enterprise AI HR, beyond generalist VCs.
David Mann of Stalwart Ventures said:
"Novaworks is rethinking that foundation with an AI-native platform."
HCM Market Grows to $44B
The human capital management market stands at $29.23B in 2026, projected to reach $43.71B by 2035 at 10.8% CAGR. Competitors like Moveworks ($315M before ServiceNow acquisition) and Shapes ($24M) chase AI workflows, but lack Novaworks' ServiceNow-native edge. Trends toward agentic AI and total workforce unification drive capital inflows.
Ex-ServiceNow Founders Lead Charge
Co-founders previously sold Hitch Works to ServiceNow, bringing insider expertise. The team includes ex-ServiceNow executives and new CPO Melanie Lougee from Workday. This repeat success positions Novaworks to navigate enterprise sales cycles effectively.
Demo Debuts at Transform 2026
Novaworks plans to demo at Transform 2026 in Las Vegas, targeting ServiceNow ecosystem partners. The launch aligns with ServiceNow's March 2026 HRSD updates, accelerating adoption among existing users.