TL;DR: Phenom Integrates Included's Workforce Analytics for Smarter HR Decisions
Phenom has acquired Seattle startup Included to strengthen its HR analytics with actionable insights focused on diversity, inclusion, retention, and hiring efficiency. This move benefits HR professionals and enterprises by transforming raw employee data into decision-ready insights, positioning Phenom to lead in advanced, AI-backed workforce management. Entrepreneurs eyeing acquisitions can take notes on solving industry bottlenecks and building scalable tools.
Unlock more lessons for startups by exploring tips on strategic innovations in HR tech.
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In a significant move for the HR technology landscape, Pennsylvania-based human resources platform Phenom recently acquired Seattle’s Included, a promising AI-driven startup specializing in people analytics. The acquisition, announced on January 14, 2026, is set to integrate Included’s data-driven insights into Phenom’s existing talent management ecosystem. While financial details of the deal haven’t been disclosed, the acquisition is being lauded for its potential to reshape workforce analytics and improve organizational decision-making.
What Is Included, and Why Did Phenom Acquire It?
Founded in 2021, Included emerged as a software solution focused on diversity, equity, and inclusion (DEI) analytics in the wake of the racial equity movements of 2020. Over time, the startup broadened its scope to include workforce retention, hiring efficiencies, performance evaluations, and employee engagement. With backing from notable investors like FlyingFish Partners and SignalFire, Included raised a total of $7.3 million in funding and became a staple of Seattle’s burgeoning HR tech ecosystem.
Phenom’s rationale for acquiring Included lies in the growing demand for actionable, AI-powered workforce analytics. By integrating Included’s capabilities, Phenom aims to enhance its workforce planning tools, offering HR professionals granular insights on employee performance bottlenecks, hiring trends, and organizational health data. Phenom’s CEO stated, “With workforce analytics evolving beyond static dashboards, we need tools that turn data into real-time decisions. Included complements this vision perfectly.”
Who Will Benefit from This Acquisition?
- HR Professionals: Gain access to more robust data sets and prediction tools for workforce trends.
- Large Enterprises: Early adopters in Phenom’s Fortune 500 client roster will likely test and use the enhanced features first.
- Investors and Loyalists: Included co-investors see a strong return in a hot HR tech market.
Importantly, Included’s existing customer base will also benefit from being embedded in Phenom’s wide-reaching global platform, which serves over 700 brands worldwide.
Insights From Violetta Bonenkamp, the Mean CEO
According to Violetta Bonenkamp, a serial entrepreneur and multi-disciplinary innovator, this acquisition is a classic example of how startups should strategically position themselves for acquisitions by larger tech giants. “If you’re running a niche startup like Included,” she explains, “the way to attract suitors is by solving a key bottleneck for a larger ecosystem player. For HR tech, that bottleneck has always been turning employee data into actionable and predictive insights.”
Drawing from her own experience scaling deeptech and edtech startups, Bonenkamp argues that company founders should treat acquisitions not merely as exits but as integrations into a bigger system. “The success of the Included founders isn’t just about a financial windfall for investors; it’s about having their technologies now embedded in one of the most influential platforms in HR,” she explains. This perspective aligns with her focus on infrastructure and real-world utility in the startup ecosystem.
How Does This Fit Into Broader HR Tech Trends?
The acquisition highlights significant trends in HR technology for 2026:
- Increasing Focus on AI-Driven Analytics: HR leaders are moving away from passive data collection towards systems that solve real problems, from hiring bottlenecks to retention risks.
- Consolidation in HR Tech: With valuations peaking in the SaaS world for people analytics, companies like Phenom are intent on bundling robust feature sets through acquisitions rather than developing in-house solutions.
- Diversity and Inclusion: Originally focusing on DEI metrics, Included’s rise mirrors corporations’ continued interest in maintaining inclusive work environments beyond being performative.
Bonenkamp points out that the appetite for tools like Included signals how enterprises are prioritizing data-backed transparency. “Enterprises are under immense pressure from stakeholders to show meaningful progress, not just marketing statements, on DEI and workforce diversity goals,” she notes. Tools that allow companies to track not only diversity outcomes but also how this ties into profitability and innovation performance are becoming critical.
How Can Startups Position Themselves for Acquisition?
Here are actionable tips from Bonenkamp on how early-stage startups can make themselves attractive to potential acquirers:
- Focus on a Pain Point: Identify critical bottlenecks in your industry and build focused solutions around them. For Included, this was integrating disparate HR systems to surface insights.
- Complement Larger Ecosystems: Build with interoperability in mind. Acquirers don’t want to deal with heavily siloed systems.
- Prove Scalability Early: Even if you’re a small product team, show that your technology can scale with demand.
- Forge Investor Relationships: Work with strategic investors who understand your market and can help with introductions to larger players like Phenom.
Bonenkamp further emphasizes the importance of narrative control during negotiation. “No acquirer wants to hear founders who are unsure of their metrics or risks. Before entering M&A talks, document every process, data point, and customer validation your team has achieved,” she advises.
Final Thoughts
Phenom’s acquisition of Included is a reminder that startups addressing niche yet significant challenges can scale their impact through the right partnerships. For current and aspiring founders, the blueprint is clear: tackle real bottlenecks, interface seamlessly with existing ecosystems, and position yourself as indispensable rather than experimental.
For those in the startup ecosystem, this acquisition also answers a bigger question: data and diversity-focused tools aren’t just marketable ideas, they are now critical technologies for modern enterprises. Whether you’re designing the next DEI metric solution or game-changing SaaS offering, remember this: be prepared, be scalable, and above all, be necessary.
To explore more entrepreneurial lessons from case studies or learn about AI-driven startup tooling, check out resources from Fe/male Switch’s entrepreneur game.
FAQ on Phenom’s Acquisition of Included
Why did Phenom acquire Included?
Phenom acquired Included to integrate advanced AI capabilities into its platform, improving workforce analytics and decision-making efficiency. This strategic move caters to growing demand for real-time, actionable HR data. Discover strategic lessons from other HR tech acquisitions.
What role did diversity-focused analytics play in Included’s success?
Included initially focused on DEI analytics, providing corporations tools to measure and act on diversity goals. Their ability to evolve into broader workforce analytics proved instrumental in creating value. Learn from Seattle startups’ success in niche markets.
Who benefits most from the Phenom and Included collaboration?
HR professionals and Phenom’s Fortune 500 clients gain refined tools to address hiring trends and performance bottlenecks. Additionally, Included’s investors gain returns amid a booming HR tech market. Explore how startups scale through ecosystem integration.
How does this acquisition reflect larger HR tech trends?
The Phenom-Included deal highlights shifts towards AI-driven analytical tools and the consolidation of SaaS platforms in HR tech. These trends emphasize efficiency through technology integration. Stay updated on winning tech trends for startups.
What can startups learn from Included’s acquisition?
Startups like Included succeed by solving niche pain points while maintaining scalability. Positioning as indispensable rather than experimental is key for attracting larger acquirers. Learn essential startup skills for scaling successfully.
What specific technologies does Included bring to Phenom?
Included specializes in agentic people analytics, merging disparate HR systems into cohesive insights. This integration offers predictive analytics crucial for workforce planning and retention. Explore strategic AI-driven solutions in niche industries.
How does this acquisition influence the DEI landscape?
This deal underscores the business relevance of diversity. Enterprises increasingly demand DEI tools that connect diversity initiatives to profitability and innovation. Read how startups in HR tech drive diversity outcomes.
How are investors supporting HR tech startups?
Strategic investors like SignalFire helped Included scale by connecting them with industry leaders and fostering agility in product development. Partnerships like these fuel startup growth. Find out how investors back European startups.
What cultural challenges might arise during Phenom’s integration of Included?
Integrating Pennsylvania-based Phenom and Seattle’s Included will require aligning East Coast corporate structures with a startup mindset. Retaining entrepreneurial talent is crucial. Learn how startups scale through partnerships.
How can early-stage startups position themselves for acquisition?
Focus on resolving industry bottlenecks, align with larger ecosystem needs, and proof scalability. Robust investor relations can also attract acquirers. Get practical tips to boost acquisition-readiness.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the “gamepreneurship” methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the point of view of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.