filtered.ai Raises $7M to Revolutionize Tech Hiring

Filtered.ai Secures $7 Million to Expand Technical Hiring Services

Filtered.ai, headquartered in Boston, has recently completed a $7 million funding round. This capital injection is intended to accelerate the company’s recruitment efforts and refine its go-to-market strategy for its specialized hiring service.

Addressing the Challenges of Tech Talent Acquisition

TechCrunch engaged with Filtered.ai to explore the rationale behind its decision to pursue external funding, and to delve into the potential of its service to broaden access to technical roles.

The company originated in 2016 as an internal initiative spearheaded by founder and CEO Paul Bilodeau while he was working at a consulting firm. Filtered officially became independent from the consulting group in 2019.

A term sheet for funding was secured in March 2020, but the onset of the COVID-19 pandemic introduced a period of uncertainty.

How Filtered.ai is Disrupting Traditional Hiring

Filtered.ai’s core offering aims to address inherent biases and inefficiencies within the technical hiring landscape, particularly for startups. Many developers and data scientists experience frustrating and ineffective hiring processes.

Traditional methods, such as resume screening, are often unreliable indicators of actual skill. Similarly, on-site whiteboard interviews are widely disliked by candidates. Filtered.ai directly tackles these issues.

The platform utilizes skills-based take-home assessments, enhanced with AI to detect potential fraud. Companies can review recordings of candidates working through these assessments, gaining insight into their problem-solving approaches.

Furthermore, Filtered.ai facilitates video-based, open-ended interviews, reducing the reliance on standardized phone screens that primarily serve to employ entry-level HR personnel.

Accelerating the Offer Process

Filtered.ai asserts that its system streamlines the hiring process, enabling companies to extend job offers more efficiently.

Promoting Equitable Hiring Practices

A key focus for TechCrunch was understanding how Filtered.ai’s service impacts diversity and inclusion in hiring. By prioritizing skills over resume keywords, the company believes it can create a more level playing field.

According to Bilodeau, a shift away from resume-centric evaluation naturally leads to increased diversity as candidates are assessed based on demonstrable abilities rather than application optimization.

Here's a breakdown of the benefits:

• Reduced bias in initial screening.
• More accurate assessment of technical skills.
• Faster time-to-hire.
• Potential for increased diversity.

Filtered's Funding Journey

The discussion now turns to the financial aspects of Filtered's growth. The anticipated venture capital round coincided with the beginning of the COVID-19 pandemic, presenting a challenging situation for the startup.

According to a TechCrunch interview with Bilodeau, Filtered secured funding incrementally throughout 2020, ultimately finalizing the round in the year's final quarter. This timing proved beneficial for investors – Silicon Valley Data Capital and the AI Fund – as the company experienced its most successful quarter historically.

The Decision to Seek External Funding

Bilodeau explained that the initial inclination was to avoid external funding altogether. He views publicizing fundraising as akin to announcing a personal mortgage, deeming it an unremarkable event.

However, the desire to proactively expand the team, independent of securing new contracts, prompted the decision to seek capital. Furthermore, increased investment would facilitate enhanced marketing initiatives, pricing adjustments, and a shift towards a land-and-expand sales strategy, moving away from a purely enterprise-focused approach.

Securing additional funds was seen as a catalyst for these strategic changes, making their implementation more feasible.

Future Prospects

Looking forward, there is hope that Filtered will be able to demonstrate a measurable impact on increasing diversity in technical hiring practices. Such quantifiable results could prove even more significant than simply achieving rapid revenue growth.

The ability to showcase a positive influence on inclusive hiring would further solidify Filtered’s value proposition.