CareerArc Raises $30 Million in Private Equity Funding

January 24, 2019 – CareerArc, a global leader in HR technology, has raised a $30 million growth equity round led by PeakEquity Partners.

CareerArc bills itself as the only company offering both social recruiting and virtual outplacement solutions to the multi-billion dollar HR software market.

It helps organizations manage the two critical touchpoints in employment in which an employer brand is tested and scrutinized – hiring new talent and transitioning employees out of the organization.

“This investment and the support of the team at PeakEquity Partners should allow us to accelerate our growth, expand product offerings and strengthen our market position,” said Robin D. Richards, co-founder and CEO of CareerArc. “PeakEquity has a broad set of strategic and operational experience that will be valuable as we continue to execute on our vision and take CareerArc to the next level.”

CareerArc provides a state-of-the-art HR software platform that enables enterprises to recruit talent, transition their workforce, and manage their employer brand more effectively. The company, established in 2009, will use the investment to fund an aggressive expansion plan to support product innovation and accelerate sales and marketing efforts.

Providing HR Solutions

“We believe this transaction will enable CareerArc to build on its long history of providing innovative HR technology solutions, leverage its strong SaaS technology platform, and continue to grow share in a multi-billion dollar addressable market,” said Ric Andersen, partner of PeakEquity.

CareerArc combines social recruiting and virtual outplacement solutions to help thousands of organizations, including many of the Fortune 500, maximize their employment brand. The firm’s social recruiting solutions allow companies to connect with job candidates on social media by distributing open jobs across social channels, creating and scheduling shareable social media content, and tracking and measuring campaign results. Its outplacement solutions enable organizations to prepare employees for their next career step through resume development tools, skills assessments, job matching and on-demand career coaching. As one of the few firms to offer both social recruiting and virtual outplacement solutions, CareerArc provides HR leaders the critical tools to both amplify and protect their employment brand.

“We are excited to partner with the team at CareerArc for the next stage of their growth,” said D.J. Andrzejewski, partner of PeakEquity. “CareerArc has a seasoned executive team led by co-founders that have partnered together in their last three companies and have a 20-year working relationship. We are backing a team with a history of innovation that we believe will capitalize on the company’s market opportunity to achieve accelerated revenue growth.”

Robert Michalik, managing director of founding lead investor Kinderhook Industries, said the funding will further bolster his firm’s position: “We are pleased to welcome PeakEquity Partners into the CareerArc family and believe with this substantial new insertion of capital that CareerArc will accelerate its market-leading position.”

Investment Funding

Investors are pouring money into recruiting solutions businesses, especially those with an AI component. Here’s a look at some recent funding deals secured by these companies from the Hunt Scanlon Media archives:

France-based Talentsoft, a cloud-based human resource software solutions provider for talent management learning, has raised $50 million in a financing round which it says will boost continued growth via innovation and international market expansion. Talentsoft is focused on optimizing the employee experience while taking…

pymetrics, an enterprise SaaS company that uses neuroscience and AI to make the recruitment process more effective, has closed a $40 million Series B funding round. pymetrics utilizes neuroscience and AI to assess job applicants across a range of cognitive, social and emotional traits and algorithmically recommend the best-suited candidates to companies. 

Scout Exchange, a recruitment marketplace connecting employers with specialized recruiters, has received $100 million in funding from TRI Ventures. The funding will accelerate growth of Scout’s recruitment marketplace, which has been adopted by hundreds of employers including 50 Fortune 500 companies and thousands of specialty recruiters.

Reflektive, an HR analytics and employee engagement platform, has raised $60 million in Series C funding. The company said it will use the cash infusion to invest in research and development to help grow its cloud-based platform of people management solutions. It also plans to double its engineering team and expand strategies worldwide.

ENGAGE Talent, an AI software company that helps companies identify and effectively engage with passive candidates, has raised $3 million in new funding. Participating investors included Revolution’s Rise of the Rest Seed Fund, Refinery Ventures and Grand Ventures. 

Joveo, a recruitment technology platform, raised $5 million in Series A funding led by Nexus Venture PartnersThe start-up intends to use the cash infusion to continue to accelerate its product offerings, expand its partnerships and scale its AI/deep-learning layer. Apart from the funding announcement, Joveo also made public its acquisition of Ripple Labs.

New York-based human cloud firm Hyr raised $1.3 million in a seed funding round led by venture capital firm Flybridge Capital Partners, according to media reports. Hyr, which matches gig workers with hospitality companies, has boarded more than 10,000 workers since it started last year. The company is led by Erika Mozes and Joshua Karam.

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media

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