KarmaCheck Secures $45M in Funding to Enhance Technology and Broaden Market Reach
Background check, credentialing, and compliance software company KarmaCheck Inc. has announced the successful raising of $45 million in new funding aimed at accelerating the development of its technology platform and expanding into new industry segments.
Founded in 2019 by Eric Ly, one of the co-founders of LinkedIn, KarmaCheck presents its service as a reimagined approach to background checks and credentialing by integrating the industry's best technology with exceptional customer support. The company achieves this through a unified platform that consolidates thousands of sources for checks, thereby speeding up the screening process.
KarmaCheck asserts that its platform offers fast turnaround times and more efficient checks, which provide a competitive edge to companies using the service. By leveraging artificial intelligence and digitized processes for screening and verification, KarmaCheck claims to reduce the risk of hiring the wrong talent and potential liabilities from negligent hiring.
Eric Ly, CEO of KarmaCheck, remarked on the often frustrating nature of background checks and credentialing for both candidates and hiring managers. He emphasized that KarmaCheck "focuses heavily on both technology innovation and expert-led customer service," highlighting the company's AI-forward approach as a unique element in the industry. This strategy enables KarmaCheck to deliver "fast and accurate results" while providing the best candidate experience.
The company reports robust growth, particularly in highly credentialed industries like healthcare, where speed-to-hire is a significant competitive advantage. Notable customers of KarmaCheck include McDonald's Corp., MedPro Healthcare Staffing LLC, PRN Healthcare LLC, Receuiter.com Group Inc., Domino's Pizza Inc., and Lead Heath Inc..
The Series B funding round was led by Parameter Ventures LP, with participation from NextView Ventures Management LLC, PruVen Management Company LLC, and Velvet Sea Ventures LLC. According to data from PitchBook, KarmaCheck has raised approximately $60 million to date, including this latest funding round.
This substantial new investment will allow KarmaCheck to further develop its technology platform and venture into new industry segments. The company's service aims to help organizations hire the right talent swiftly, which is especially crucial in sectors like healthcare.
KarmaCheck's unified platform is designed to streamline the background check and credentialing processes, providing companies with faster and more reliable results. This capability is particularly beneficial in sectors where quick hiring decisions are critical.
The company places a strong emphasis on both technological advancement and superior customer service, believing that this combination is key to delivering the best results and the most favorable candidate experience. As KarmaCheck continues to innovate and expand, it remains committed to enhancing the efficiency and effectiveness of background checks and credentialing, ultimately aiming to transform the hiring process for its clients.
With the backing of significant investors and a clear focus on innovation, KarmaCheck is well-positioned to lead the industry in providing advanced background check and credentialing solutions. This funding round not only supports the company's growth ambitions but also reinforces its commitment to delivering high-quality, reliable, and efficient services to its expanding customer base.
