Eight years ago ZipRecruiter made a bet that by using technology it could hook up employees with viable job candidates better and quicker than traditional recruiters. Since then it has proved itself, helping more than 1.5 million businesses find employees from the more than 430 million applications it received.
But ZipRecruiter isn’t done disrupting the talent search market. With a new $156 million round of funding, announced earlier in October, it is focusing on enhancing its artificial intelligence prowess for future growth. According to Bloomberg it now has a valuation of $1.5 billion, propelling it into unicorn status.
As it stands, the Los Angeles-based software as a service company says its AI technology is so proficient in making matches that 80% of employers who post on the site find a qualified candidate in one day. Job seekers, all too familiar with the frustration of sending off a resume never to hear anything again, receive notification within 48 hours if their application has been viewed by a hiring manager. “The rise of AI has transformed how employers source talent and job seekers find work,” said Ian Siegel, co-founder, and CEO of ZipRecruiter in a press release announcing the funding, which was co-led by Wellington Management Company and existing investor IVP. Other existing, but unnamed investors, also participated. To date, ZipRecruiter has raised $219 million in venture funding. In August of 2014 IVP invested $63 million in the company.
The latest round of funding comes at a time when competition in the online hiring space is intense and getting fiercer. ZipRecruiter has to contend with old stalwarts including Monster.com, Glassdoor, and CareerBuilder as well as new entrants including Alphabet’s Google. All are embracing technology to better serve the slew of employers who are having a tough time finding the right talent in a tight labor market.
ZipRecruiter’s AI-based algorithm is able to learn what employers are looking for in talent and then provide a personalized, curated list of candidates that match the job skills the employer is seeking. For job seekers, the AI technology matches them with jobs based on more than just job title. The technology is able to offer up job opportunities in industries that may be of interest as a result. The company currently has more than 200 engineers working on the AI technology.
ZipRecruiter wasn’t always so AI focused. In the early days ZipRecruiter connected employers to as many job sites as possible but with employers being inundated with hundreds of applications on a daily basis the company retooled, focusing on providing employers with a more personalized pool of potential applicants. The company has more than 100,000 businesses using its platform and according to Bloomberg claims to add 10,000 new ones each month. In June it rolled out Candidate Calibration a new feature geared toward employers that allows them to give feedback about the type of candidates they are looking for before candidates apply. “In a tight and ever-evolving labor market, businesses need effective, innovative hiring solutions now more than ever,” said Eric Liaw, General Partner at IVP in announcing the investment. “ZipRecruiter has modernized the recruitment experience in an essential, undeniable way.”