Teamable, a provider of hiring software that leverages employees social networks, has brought in $5 million from new investor Foundation Capital and existing backers True Ventures and SaaStr Fund.The startup also announced its acquisition of Simpplersreferral recommendation engine and matchmaking recruiting software.
Teamables co-founder and chief executive officer Laura Bilazarian declined to disclose the terms of the dealbut said none of the $5 million investment was used to finance the transaction.According to Crunchbase, Simpplerhad raised $3.2 million in equity funding from Foundation Capital, Greylock, Vertex Ventures and others.
The company, which is akin to Teamable, creates areferral platform using existing employee networks; it was founded byVipul Sharmain 2013.
Sharma previouslyran machine learning atEventbrite and, according to his LinkedIn profile, hes been an engineering director at Indeed for the past year.Sharma and the Simppler team will not be joining Teamable .Using Gmail, Facebook, GitHub and other social media platforms, Teamable aggregates its employees contacts to connect recruiters with a more focused set of potential candidates.
Companies using Teamable, including Spotify and Lyft, then facilitate a warm introduction between a candidate and the employee in theirnetwork.
The startup says itssocial recruiting algorithms lead to more efficient and diverse hiring practices.I dont think candidates love the way recruiting is done, Bilazarian told TechCrunch.
They are throwing applications over a wall and not hearing back.
And Idont think companies love the way recruiting is done because people are just making guesses based off a job description and they arent getting the right applicants.Instead of few people at a company spamming the entire world, you have people who really understand the company reaching out to you, she added.
Teamable is very precise.
Its reach out to five people to get a hire versus reach out to 200 just to get one response.The Foundation-led investment brings Teamables total equity funding to date to $10 million, including last years $5 million Series A.Bilazarian says the 50-person company is cash flow positive with 200 customers.
With offices in San Francisco andYerevan, Armenia, Teamable will use the capital to expand its team and recruiting platform.