Recent college graduates, and potentially those in the coming years, are navigating a particularly difficult employment landscape shaped by the coronavirus pandemic and its effects on economic activity and social interaction. Today, a company dedicated to assisting them in their job search is announcing a significant funding achievement to facilitate its growth.

Handshake, a platform that enables college students to showcase their skills and interests while searching for appropriate employment opportunities, and allows recruiters to find candidates and advertise entry-level positions, has secured $80 million in a new round of growth funding.

While Handshake has not publicly disclosed its valuation, a source familiar with the company indicates that it has more than doubled since the previous funding round, which valued the company at $275 million. This suggests a current valuation ranging from $550 million to $600 million.

Established in 2014, the company has distinguished itself as a more inclusive alternative to LinkedIn, specifically geared towards individuals beginning their careers, and it intends to leverage this funding to further strengthen that position.

Currently, Handshake connects 17 million job seekers with 1,000 colleges and universities and nearly 500,000 employers. It also maintains partnerships with approximately 120 minority-serving institutions, including Historically Black Colleges and Universities and Hispanic Serving Institutions, to support both the institutions and their students in the job search and recruitment process.

This year, Handshake has utilized previous funding—which was finalized in November 2019—to broaden its network to include community colleges and to enhance its virtual event capabilities.

This Series D funding round is led by GGV and includes participation from all existing investors. Handshake has previously received backing from prominent investors, including EQT, the Chan Zuckerberg Initiative, Omidyar Network, Reach Capital, True Ventures, Kleiner Perkins, Lightspeed Venture Partners, Spark Capital, and KPCB Edge, who led a $40 million Series C round in 2018.

Garrett Lord, CEO and co-founder of Handshake alongside Scott Ringwelski (CTO) and Ben Christensen (a board member), explained that the coronavirus pandemic has fundamentally altered not only the job market but also the job-seeking process.

“The pandemic has significantly reshaped the hiring landscape,” he stated. “With companies no longer able to conduct on-campus recruitment—a traditionally vital method for connecting with new graduates through in-person events—we’ve observed an unprecedented transition to virtual recruiting.”

He added that while virtual events were gaining traction “before Covid,” they have now become the primary means of recruitment. Currently, around 20,000 employers are hosting virtual recruitment events on the Handshake platform, offering online mixers and fairs that include five 30-minute group sessions with up to 50 students each, featuring presentations and discussions, and/or 10-minute one-on-one meetings with up to 15 recruiters.

Despite these advancements, the job market remains challenging. Lord reported a 20-30% decrease in job postings at the onset of the pandemic, particularly in sectors like hospitality, with companies reducing proactive campus recruitment efforts. However, over the past seven months, many have recognized the need to maintain visibility and are gradually returning.

“They increasingly rely on Handshake to replicate the benefits of in-person experiences with digital and immersive alternatives,” Lord said.

The company’s recent expansion to include community colleges has been a significant development this year.

Historically, a distinction has been made between two-year and four-year institutions regarding prestige and expertise. However, as the concept of higher education evolves, with more students choosing not to pursue a traditional four-year degree or opting for vocational training, and as the cost of college continues to rise, it is essential that platforms supporting one group of students also support the other.

For investors, Handshake presents an attractive opportunity, particularly as companies increasingly prioritize and invest in building diverse workforces, recognizing that proactive measures are often necessary to achieve meaningful change.

“Since its inception, Handshake has been dedicated to its mission of democratizing job opportunities by connecting employers with students seeking employment at institutions of higher education, and has cultivated a robust network of 17 million job seekers, 1,000 institutions of higher learning, and nearly 500,000 employers,” stated Jeff Richards, Managing Partner of GGV. “We are pleased to collaborate with the Handshake team to further expand its impact by delivering innovative, leading-edge recruitment solutions and extending into new markets.”