KarmaCheck, a San Francisco-based company specializing in technology-driven background checks, has secured $45 million in a Series B funding round (all figures U.S.).
The financing was led by Parameter Ventures, with contributions from PruVen Capital, Velvet Sea Ventures, GC1 Ventures, and NextView Ventures.
Founded in 2019 by Eric Ly, one of the co-founders of LinkedIn, KarmaCheck aims to streamline and improve the background check process for both candidates and employers.
“Background checks and credentialing have long been among the most frustrating steps of the hiring process for both candidates and hiring managers,” said Ly. “KarmaCheck focuses heavily on both technology innovation and expert-led customer service.”
The new funding will be used to enhance KarmaCheck’s proprietary technology platform, scale its services, and expand into new industry verticals, it said in a press release. This follows a year of significant growth for the company, including a revenue increase of over 600% and a 300% expansion of its customer experience team.
KarmaCheck’s platform features automated dashboards and API integrations with applicant tracking systems, offering faster and more accurate results. According to the company, its services are up to three times faster than competitors’ with no loss of accuracy.
“KarmaCheck excels across all of these areas,” said Pete Hietpas, CEO of PRN Healthcare, a healthcare staffing firm. “Our administrators love the platform and the responsive support, candidates like the transparency and easy scheduling, and everyone appreciates the fast and accurate screenings.”
Douglas Romanoff, Partner at Parameter Ventures, emphasized KarmaCheck’s potential to bring transformative solutions to professional background checks. “KarmaCheck stands out as a leader in a critical sector ripe for new approaches,” said Romanoff. “Its innovative product, experienced management team, and commitment to customer success align closely with our investment philosophy.”
KarmaCheck’s service is particularly popular in highly credentialed industries like healthcare, where speed-to-hire is crucial. The company’s technology enables faster results, lower costs, and a better experience for both candidates and employers.