Our product lets recruiters create custom interviews in collaboration with managers, helping influence the decision-making process.
We are a self-funded start-up with repeat customers who have been with us since 2016. We are at a tipping point where growth capital is what we need to really scale into 7 figures in revenue. Our largest client is a $500M+ staffing firm that is positioning themselves to go to the next level. They recently purchased a $140M staffing firm and they are partnering with us to roll us out to their national sales force. We need to scale our team to support this partner/client alone, but it fits beautifully within our larger plan to scale client acquisition and retention.
We have two primary target profiles: Corporate Talent Acquisition departments who focus on IT and IT staffing firms. The Bureau of Labor Statistics say that about 24% to 27% of the workforce changes jobs every year and they are forecasting IT jobs will increase by 13% annually between 2016 and 2026. Bersin by Deloitte say that companies spend about $4,000 per hire in the US. This places the amount US firms spend on hiring just north of $300B; the IT slice of that is about 55% with the pace of that accelerating for the next decade.
Problem or Opportunity
An Indeed.com study showed that US firms burn $160B a year due to lost productivity from unfilled seats. Bersin by Deloitte says that the average seat is open for 52 days, which means the average empty seat costs a software company $1,000 a day. Our track record has shown we can accelerate the pace at which companies hire IT professionals.
Solution (product or service)
We have the world's only SaaS solution that lets a recruiter conduct, score and document a detailed interview of an IT candidate without needing to know the underlying content. Our clients can collaborate with managers on a peer level, sharing an interface that lets them cherry pick questions out of a library of over 100 IT skills or have them add their own questions. Our algorithm scores the result and the recruiter can submit a detailed report of the interview for each candidate.
There are three types of technical evaluation solutions: Coding exercises (Hacker Rank, Codility, Codepad, Lytmus) self-paced multiple choice tools (TekCheck, Brain Bench, e-Skill, Proveit) and live technical screening services (e-Teki, Derrico). All of these solutions cut the recruiter from the recruiting process, which actually goes on hold while the candidate is sent a link to an online test. The recruiters who send links to these online exams have to hope the candidate doesn't delete the email, Google all the answers or have someone else take it.
Advantages or differentiators
We have the world's only solution that empowers the recruiter to be the one handling the technical interview, but we have already documented some substantial success stories that would be hard to duplicate or surpass. We helped one corporate client generate a 70% Interview-to-Offer ratio; the industry average is 17%, according to a 2015 study by Jobvite. Three of that clients' Engineering teams skip the manager phone screen if a candidate gets a 75 better on a TechScreen interview. One of our staffing clients saw its recruiters reject 64% of 3,700 candidates they have screened since 2016, an unheard of knockout rate for the industry.
We use a standard SaaS model that bills $50 a month per seat, with discounts for volume and longer term commitment. We anticipate an exit within the next 36 months.
We have a B2B service model with customers who pay a per-seat subscription fee on a monthly, quarterly or annual basis.
Money will be spent on
Our funding will be spent in two major areas: Sales & Marketing to accelerate client acquisition and Customer Success to scale client penetration and retention. I would hire a leader in both areas to build teams immediately. We have seen recent success in attending Staffing industry events like StaffingTec and TechServe Alliance. There are far more conferences that cater to the Corporate recruiting space, which would give us the kind of brand we will need to scale into 7 figures of revenue and beyond.
Offer for investor
We would be willing to put up to 25% for this Seed Round.
One risk we have is that if there were a severe market downturn, we could see a change where companies seriously curtailed IT hiring across the boards. If no one was hiring, companies wouldn't need a screening tool. HR Tech is seeing an aggressive adoption of AI/ML, which presents an in-direct risk. We are the only solution where the recruiter is conducting the assessment and clients relish that our tool doubles as an experiential learning platform for recruiters. If an AI-driven tool that processed asynchronous interviews at scale that could deliver such outstanding results, end clients may be less interested in a tool that also benefits the professional development of their people.