A startup in background checking, KarmaCheck, announced it raised $45 million–its founder happens to be one of the LinkedIn co-founders.
This San Francisco-based company commented Thursday that it wanted the funds raised to help speed up the development of its technology and “expand into new industry verticals.”
WHY IT MATTERS
KarmaCheck is one of several companies trying to automate legacy, paper-based processes that are often highly manual or low value in human resources. That means demand has soared for services like criminal background checks and education verification—things that are part of most companies’ hiring processes—since the pandemic really accelerated remote working.
KarmaCheck counts Domino’s Pizza, opens new tab, McDonald’s, opens new tab, and several healthcare and gig economy players as customers.
The company also touts that it returns results nearly twice as fast as traditional methods for such checks.
NextView Ventures, PruVen Capital and Velvet Sea Ventures also participated in the company’s latest funding round.
Founded in 2019 by Eric Ly, the founding CTO of LinkedIn, KarmaCheck has more than tripled its headcount to over 100 employees and said revenue increased sevenfold in 2023. Among its rivals are Checkr, First Advantage FA.O, opens new tab, and Sterling Check STER.O, opens new tab. First Advantage agreed to buy Sterling in a $2.2 billion deal in February.
KEY QUOTES
“Background checks and credentialing has been one of the most lengthy and frustrating parts of the hiring process,” Ly said.
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