Checkr is a tech startup that has developed a faster and more accurate way to perform background checks on potential workers. The company recently raised new Series E funds to increase the scope of the business.
How Checkr works and the rapid growth of the business
Tech startup Checkr uses artificial intelligence (AI) to help improve the speed and accuracy of background checks conducted by a recruiting company. The startup has developed a way to automate various aspects of the process and verify sources of information.
The company provides a background check through multiple different sources to find criminal records, civil non-criminal records, driver’s license and status, international records, and criminal records. Additionally, it checks a candidate’s prior drug history and checks education and work history for accuracy.
The breadth of background checks offered by the tech startup already provides more information and scope than most traditional background checks used by a growing company. The background check provided by Checkr is also much faster than similar services, with most company checks taking less than 48 hours to complete. This level of speed has resulted in staffing companies using Checkr, reducing time to hire by an average of 86%.
The company can provide its services at scale to practically all companies, regardless of the number of potential employees that need to be screened simultaneously. The company currently conducts more than 30 million background checks annually, and that number is projected to increase over time.
The speed and accuracy of Checkr’s background checks have helped the tech startup amass a significant customer base. The services provided by the company are used by several major trade names, including Instacart, Netflix, Lyft, Coinbase, Airbnb, and Papa John’s, among many others.
Checkr maintains a profitable business model and generates hundreds of millions of dollars in revenue each year.
Checkr funding and future steps
In its Series E funding round, Checkr raised $ 250 million in venture capital. The funding round was led by Durable Capital, Fidelity Management & Research Company, and Franklin Templeton. BOND Capital, Khosla Ventures, IVP, T. Rowe Price, Coatue, Accel and Y Combinator also participated in the funding round. The new capital has raised the company’s public valuation to $ 4.6 billion.
The tech startup plans to use this new funding to help further expand the business and meet growing demand from newcomers. Additionally, money will be spent to improve the company’s current technology and further increase the speed of background checks.
Commenting on the latest round of funding for the tech startup, Checkr CEO Daniel Yanisse said: “As the workforce becomes more flexible, people’s expectations are changing about where and how they work. We are seeing a growing need for innovative technology to support a new way of identifying, onboarding, engaging and even delivering wages and benefits to workers. We plan to use the new funds to realize our vision of becoming the new infrastructure for the future of work and continue our mission to build a fairer future. “