SAN FRANCISCO, April 07, 2022 (GLOBE NEWSWIRE) -- KarmaCheck, a first-of-its-kind company that uses data-driven technology to bring truth, speed, and efficiency to background checks, today announced they have secured $15M in Series A funding. The round was led by Velvet Sea Ventures, an operator-led multi-stage VC firm dedicated to accelerating digital transformation and digital ownership. Additional investors include Parameter Ventures, One Way Ventures, NextView Ventures and Dash Fund.
Established by LinkedIn co-founder, Eric Ly, KarmaCheck’s mission is to enhance the verification and onboarding process for enterprise customers and create meaningful professional opportunities in today’s economy. According to KarmaCheck’s proprietary research, roughly 44% of the information provided by LinkedIn users is false. And with many companies transitioning to an entirely remote workforce, the ability to verify the truth about people’s identities has never been more necessary to today’s enterprises.
Utilizing proprietary data access and processing, KarmaCheck aims to deliver the fastest background checks offered in the industry, significantly speeding up the hiring and onboarding processes by up to 350%, giving employers the competitive advantage in hiring, while also safeguarding the identities and personal information of candidates. As a result, background checks can be completed in minutes instead of days or weeks. This speed enables employers to deliver higher revenues sooner in the current hyper-competitive talent environment. Powered by AI technology to judge speed and accuracy, KarmaCheck provides employers real-time, actionable insights, completely reimagining and disrupting the background check industry.
“In an all remote and digital work environment, employers are hunting for quality hires at a time where it’s become easier to hide behind a false identity,” said Eric Ly, founder of KarmaCheck. “Our AI-based technology utilizes previously gathered data on an individual, enabling companies to accurately and efficiently cut through fabricated information. Not only does this give us a competitive edge, but also employers when it comes to hiring the right candidates.”
KarmaCheck already works with hundreds of the biggest companies in North America, including McDonald's, Domino’s, Recruiter.com, and more. Using KarmaCheck’s first-of-its-kind AI-driven technology, leading pizza brand Domino’s saw more than 96% of the company’s background checks were instantaneous, and 99% of job applicants went on to complete their onboarding process - an increase from their initial completion rate of 30%. Other companies KarmaCheck has worked with include Clover Health, NexRep, and Instant Teams.
“KarmaCheck is the epitome of an industry disruptor and we’ve already seen their ability to outpace their competitors three to five times over,” said Mike Lazerow, managing partner and co-founder of Velvet Sea Ventures. “The revolutionary tech-based approach to background checks, driven by Eric Ly, makes KarmaCheck a true force to be reckoned with in an otherwise slow-paced, legacy industry.”
About KarmaCheck
KarmaCheck has reimagined background checks with a tech-first, data-driven approach that brings truth to the internet and provides the fastest background check for employment needs. Employers and employees benefit from real-time, actionable notifications, so hiring decisions come sooner. KarmaCheck’s mobile-first background check platform is easy to access, reliable, and compliant. Visit www.karmacheck.com to learn more.
About Velvet Sea Ventures
Velvet Sea Ventures is an operator-led venture capital firm that goes beyond capital to help entrepreneurs turn their visions into reality. Built by a family of entrepreneurs, VSV couples seed-to-growth stage capital investment with hands-on strategic support and guidance. Current Velvet Sea Ventures portfolio companies include Scopely, eToro, Liquid Death, LeoLabs, Autograph, Strigo, SuperRare, Elementus and Pixel Vault. A full list of portfolio companies can be found here.
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