{"id":25435,"date":"2021-07-26T04:50:39","date_gmt":"2021-07-26T04:50:39","guid":{"rendered":"https:\/\/rbsitsoftwaresolution.com\/blog\/smartrecruiters-raises-110m-at-a-1-5b-valuation-to-expand-its-end-to-end-recruitment-platform.html"},"modified":"2021-07-26T04:50:39","modified_gmt":"2021-07-26T04:50:39","slug":"smartrecruiters-raises-110m-at-a-1-5b-valuation-to-expand-its-end-to-end-recruitment-platform","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/smartrecruiters-raises-110m-at-a-1-5b-valuation-to-expand-its-end-to-end-recruitment-platform.html","title":{"rendered":"SmartRecruiters raises $110M at a $1.5B valuation to expand its end-to-end recruitment platform"},"content":{"rendered":"

The global COVID-19 pandemic had a chilling effect on a number of industries and their workforces, resulting in mass furloughs and layoffs. But now, with countries taking steps back to \u201cnormal\u201d, that has been leading, in many cases, back to a hiring surge. Today, SmartRecruiters<\/a>, one of the companies that has built software to handle that process more smoothly, is announcing $110 million in funding to seize the moment.<\/p>\n

The funding, a Series E, is coming in at a $1.5 billion valuation, the company confirmed. Silver Lake Waterman is leading this round, with previous backers Insight Partners and Mayfield Fund also participating.<\/p>\n

The investment will be used in two areas. First, SmartRecruiters plans to continue expanding business \u2014 its primary customers are large enterprises, with Visa, Square, McDonald\u2019s, Ubisoft, FireEye, Biogen, Equinox and Public Storage among them, and the plan will be to bring on more of these globally. Jerome Ternynck, SmartRecruiters\u2019 CEO and founder, pointed out that one of its clients, Pilot Travel Centers<\/a>, made a move recently in which it had to swiftly ramp up by 10,000 people in 90 days.<\/p>\n

\u201cThat is the scale of the great rehire that we are aiming to serve,\u201d he said.<\/p>\n

And second, it plans to hire and invest more in product. Specifically, Ternynck said the company is looking to build more intelligence into its platform, so that it can help customers find ideal matches for roles and provide them with tools to automate and reduce the busy work of managing a recruitment process.<\/p>\n

This is a notable area for growth, and one that smaller startups have also identified and are building to fix: Just yesterday, one of them, Dover, announced a Series A<\/a>.<\/p>\n

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Dover raises $20M to bring the concept of \u2018orchestration\u2019 to recruitment<\/a><\/p>\n<\/blockquote>\n

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Ternynck likes to describe SmartRecruiters as \u201cthe Salesforce of recruiting\u201d, by which he means that it provides a system of record for large enterprises that can manage 100% of the process of recruitment, from sourcing candidates to hiring.<\/p>\n

\u201cIn recruiting tech, we are the mothership,\u201d he said, with some 600 vendors integrated into its platform \u2014 a mark of how fragmented the wider industry really is.<\/p>\n

(Salesforce, incidentally, is an investor in SmartRecruiters, and while right now it\u2019s not directly working with its portfolio company to build recruitment into what it operates as essentially a massive CRM behemoth, it\u2019s an interesting prospect and seems like a no-brainer that it might try to some day. Ternynck would not comment\u2026)<\/p>\n

There are already a lot of application tracking systems in the market that can handle the basics of logging candidates and managing their progress through the screening, interview, references and hiring\/rejection cycle \u2014 Ternynck, in fact founded and sold<\/a> one of the pioneers in that space. But the problem with these is that they are limited and often work within their own silos. He refers to these ATS systems as \u201cthe first generation\u201d of recruitment software, a generation that is now getting replaced.<\/p>\n

There are some big changes driving that evolution, and specifically SmartRecruiters\u2019 growth. One key area is the bigger shift in \u201cdigital transformation\u201d, precipitated by the pandemic but also a bigger shift to cloud-based computing and evolutions in big data management. Fragmentation is rife in recruiting, but we now are equipped in the world of IT with many, many ways of navigating that and using the wide amount of information out there to our advantage.<\/p>\n

But there is another, more epistemological shift, too. Recruitment, and talent in general, has become a critical part of how a company conceives of its future success. Get the right people on board and you will grow. Fail to hire correctly and you will not, and you might even fail.<\/p>\n

\u201cThis round and our progression signals the fact that CEOs have been forced to care more about recruiting,\u201d he said. They want want to hire the best, he added, but that is fundamentally different from how recruiting has traditionally been approached, which is focused on cost per hire.<\/p>\n

\u201cThis means recruiting is coming out of the administration function and into value add and sales and marketing,\u201d he added. (That\u2019s another interesting parallel with Dover, which has gone so far as to conceive of its recruitment approach as \u201corchestration\u201d, a word more commonly associated with sales software.)<\/p>\n

The pandemic has had an impact here, too: employees and \u201chires\u201d today are not what they used to be. It has become more acceptable to work remotely, and what people have come to expect out of jobs, and what roles they are coming from when applying, are all so different, and that also demands a different kind of platform to engage with them.<\/p>\n

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Why CEOs should spend up to half their time recruiting<\/a><\/p>\n<\/blockquote>\n

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Indeed, that bigger area \u2014 sometimes referred to as \u201cthe future of work\u201d \u2014 is part of what attracted this investment.<\/p>\n

\u201cHiring talent and building human capital is more complex and important than ever, and SmartRecruiters is well positioned to help companies attract and land top talent,\u201d said Shawn O\u2019Neill, managing director and group head, Silver Lake Waterman, in a statement. \u201cTheir scale and customer growth are testament to their strong leadership and industry leading platform. We are excited to help fuel SmartRecruiters\u2019 next growth chapter.\u201d<\/p>\n

Interestingly, Ternynck noted that even despite the mass layoffs and furloughs experienced in some industries in the last year and a half, SmartRecruiters has seen business grow, even through some of the worst moments of COVID-19. Over the last 12 months, bookings have grown by 70%, he said. That\u2019s a mark of how recruiting priorities are indeed changing, regardless of whether it\u2019s a SmartRecruiters, or another kind of company entirely \u2014 and there are many, from Taleo and Cornerstone, through to smaller hopefuls like Dover, and even Salesforce \u2014 who might reap the spoils longer term.<\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/IBPnUbfFGMg\/<\/p>","protected":false},"excerpt":{"rendered":"

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