datapeople Raises $8M to Advance Equitable Recruiting

Datapeople Secures $8 Million to Advance Equitable Recruiting

Datapeople, a company specializing in software to promote fairness in recruitment, has announced a total of $8 million in funding, including a $5 million round completed in mid-2020.

Core Offerings and Backers

The startup is supported by investors such as Uncork Capital, NextView Ventures, and First Round Capital. Datapeople focuses on two primary services designed to improve hiring practices.

Language Analytics: Attracting Diverse Applicants

The company’s first product, Language Analytics, analyzes job descriptions. It provides recommendations to clients to broaden the appeal of their postings and attract a more diverse candidate pool.

Recruiting Analytics: A Holistic View of Hiring

Datapeople is preparing to launch Recruiting Analytics. This service will offer a comprehensive overview of a company’s recruitment activities.

Data-Driven Diversity Insights

The recruiting side of the platform will monitor key diversity metrics. This includes tracking the rate at which job postings attract female applicants compared to similar roles.

Addressing Gaps in Existing Solutions

Datapeople believes existing recruiting analytics tools provide only superficial insights. They contend that current solutions are inadequate when it comes to analyzing the treatment of different demographic groups.

Insights from Phillip Reyland, Co-Founder

TechCrunch spoke with Datapeople co-founder Phillip Reyland regarding the recent funding rounds and the company’s overall performance.

Target Market and Competitive Landscape

Reyland stated that Datapeople’s language product is utilized by internal recruiting teams at companies ranging from mid-market businesses to Fortune 100 organizations. The success of competitor Textio demonstrates sufficient market demand for language-focused recruitment tools.

The Evolution of Recruiting Technology

Reyland likened the current state of the recruiting industry to that of marketing two decades ago. He anticipates significant growth in the market for new recruitment tools, mirroring the expansion of marketing software over the past 20 years.

Strong Performance and Future Growth

Datapeople experienced its most successful year in 2020. Coupled with the capital raised, the company faces ambitious goals for the current year.

Expansion Plans and Early Success in 2021

The company plans to approximately double its current staff, which is in the mid-30s. Early indicators are positive, with Reyland reporting an “awesome” first quarter of 2021.

Given the company’s early stage of development, further evaluation will be reserved for a subsequent funding round.