KarmaCheck, Co-founded by LinkedIn's Eric Ly, Raises $45 Million in Funding

Learn about KarmaCheck's $45 million funding to improve background-checking tech and expand into new industries, co-founded by LinkedIn's Eric Ly.

Jun 27, 2024 - 08:34
Jun 27, 2024 - 08:35
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KarmaCheck, Co-founded by LinkedIn's Eric Ly, Raises $45 Million in Funding
KarmaCheck, Co-founded by LinkedIn's Eric Ly, Raises $45 Million in Funding

San Francisco, CA - KarmaCheck, a startup specializing in background checks and co-founded by Eric Ly, one of LinkedIn's founders, has secured $45 million in funding led by Parameter Ventures.

Purpose of Funding

The funding, announced on Thursday, will fuel the company's technological advancements and expansion into new industry sectors. KarmaCheck aims to streamline complex HR tasks, such as criminal background checks and education verification, which have become increasingly crucial in today's remote work environment.

Significance

KarmaCheck stands out in a growing market where technology is revolutionizing traditional hiring processes. Its services have seen heightened demand as companies seek efficient solutions post-pandemic.

Clientele and Performance

Among KarmaCheck's clients are major players like Domino's Pizza, McDonald's, and healthcare and gig economy firms. The startup boasts delivering results nearly twice as fast as conventional methods.

Financial Growth and Future

Founded in 2019, KarmaCheck has expanded rapidly to over 100 employees and reported a significant revenue increase in 2023. This latest funding round saw contributions from NextView Ventures, PruVen Capital, and Velvet Sea Ventures.

Competitive Landscape

KarmaCheck faces competition from Checkr, First Advantage, and others in the background-checking industry. Notably, First Advantage acquired Sterling in a $2.2 billion deal earlier this year.

Insights

"Background checks and credentialing have long been bottlenecks in hiring," noted Eric Ly. "We aim to simplify this process for both employers and job seekers."

With this investment, KarmaCheck is poised to lead advancements in HR technology, enhancing efficiency and reliability in employment screening processes across various sectors.

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