KarmaCheck, a background-checking startup founded by Eric Ly, a co-founder of LinkedIn, has secured $45 million in a funding round led by Parameter Ventures
KarmaCheck, a background-checking startup founded by Eric Ly, a co-founder of LinkedIn, has secured $45 million in a funding round led by Parameter Ventures.
The company, headquartered in San Francisco, announced on Thursday that it will allocate the funds to bolster its technological advancements and “expand into new industry verticals.”
THE REASON FOR ITS IMPORTANCE
KarmaCheck is one of numerous organizations exploring the potential of technology to simplify labor-intensive, intricate, or repetitive HR tasks.
The demand for services such as criminal background checks and education verification, which are essential to the recruiting processes of most companies, has increased due to the increased popularity of remote work during the pandemic.
Domino’s Pizza, McDonald’s, and various healthcare and gig economy actors are among the clients of KarmaCheck.
It asserts that it can generate results at a rate nearly twice as rapid as conventional methods for conducting such assessments.
Velvet Sea Ventures, PruVen Capital, and NextView Ventures also participated in the organization’s most recent funding round.
Founded in 2019 by Eric Ly, the founding CTO of LinkedIn, KarmaCheck has expanded to more than 100 employees and reported a seven-fold increase in revenue in 2023.
Its competitors include Sterling Check (STER.O), First Advantage, and Checkr. First Advantage entered a $2.2 billion agreement to acquire Sterling in February.
POINTS OF VIEW
“Background checks and credentialing has been one of the most lengthy and frustrating parts of the hiring process,” according to Ly.
“It has been one of the major friction points for employers and candidates seeking jobs.”