KarmaCheck Raises $45M to Revolutionize Background Checks

KarmaCheck, a background-checking startup led by LinkedIn co-founder Eric Ly, has secured $45 million in funding. The San Francisco company aims to accelerate its technology development and expand into new industry verticals, addressing the surging demand for efficient HR tasks spurred by the remote work era.

KarmaCheck, a background-checking startup led by LinkedIn co-founder Eric Ly, has raised $45 million in a funding round led by Parameter Ventures.

The San Francisco-based company said on Thursday that it will use the funds to accelerate the development of its technology and "expand into new industry verticals." WHY IT'S IMPORTANT

KarmaCheck is among a host of companies looking to use technology to streamline complex, labor-intensive or repetitive HR tasks. The demand for services like criminal background checks and education verification, integral to the hiring processes of most companies, has surged after the pandemic made remote working popular.

CONTEXT KarmaCheck's clients include Domino's Pizza, McDonald's and various players in the healthcare and gig economy industries among its customers.

It claims to deliver results nearly twice as fast as the 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, LinkedIn's founding CTO, KarmaCheck has grown to over 100 employees and reported a seven-fold revenue increase in 2023. Its competitors include Checkr, First Advantage and Sterling Check. 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.

"It has been one of the major friction points for both employers and candidates seeking jobs."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)