Teamable, which provides recruiting software for businesses, announced today funding of $5 million, led by True Ventures. The startup wants to help businesses connect employees’ social networks to Teamable’s software as a service (SaaS) in order to increase referrals to open positions.
“The last three years, recruiters have seen a rise in technologies being brought to market that help optimize workflows and create systems of record in HR,” wrote Teamable cofounder and CEO Laura Bilazarian, in an email to VentureBeat. “The next logical step is for recruiters to tap into machine learning and social networks to improve recruiting and HR.”
How it works: Employees connect their social networks (Twitter, Facebook, GitHub, and others) to Teamable and use the tool to search for and refer people in their networks. Company recruiters then use Teamable to source what they call “passive talent” and request introductions from their employees to qualified candidates.
Teamable uses artificial intelligence (AI) algorithms to suggest candidates based on job requirements, skill sets, experience, and other factors. As candidates get referred by employees and referral requests get sent by recruiters, Teamable tracks conversions to interviews, offers, and hires, and improves future referral suggestions by incorporating the data into its algorithms.
The SaaS offering is sold as an annual subscription — the cost is based on the number of employees in the company. Teamable claims to have more than 50 customers, which include Lyft, Stripe, and Baidu.
Teamable isn’t the only startup in the recruiting sector to raise capital. Whether it’s WayUp helping students find their dream job, or Beamery using customer relationship management (CRM) to treat job candidates like customers, VC cash is pouring in. Bilazarian views other, more established companies like LinkedIn and Indeed as direct competitors, however.
“What sets Teamable apart is that our smart algorithms surface candidates based on the unique qualities and needs of each company, rather than keyword searches that yield candidate pools that are too general to be useful to recruiters,” she wrote.
SaaStr Fund joined True Ventures in today’s investment. The new capital will be used to further develop Teamable’s data engine, improve the matching algorithms, and hire more people in sales and marketing. “We will also be integrating with more partners and applicant tracking systems (ATS),” wrote Bilazarian.
Founded in 2013, Teamable has raised a total of $5 million and has 36 employees across its offices in San Francisco and Yerevan, Armenia.