Modernloop Raises $3.3M to Revolutionize Technical Hiring

The Challenges of Modern Job Recruitment

The job search process has long been a source of frustration for candidates. Applications often disappear into applicant tracking systems (CRMs) without response, or the hiring timeline extends for months. This inefficiency impacts both job seekers and companies.

The Genesis of ModernLoop

Lydia Han and Christopher Triolo founded ModernLoop in December 2020, driven by firsthand observation of the difficulties within technical recruitment. Han, previously a product manager at Slack and Brex, gained insight from her sister’s experiences as a technical recruiter. Triolo had previously developed a “charitable donations” platform on Facebook.

They recognized a need for improved products and technology to enhance the user experience throughout the recruitment process.

Prioritizing the Candidate Experience

“Convincing a candidate to accept a job offer requires a positive initial impression,” explained CEO Han to TechCrunch. “It’s crucial to guide candidates through the process efficiently, connect them with appropriate interviewers, and deliver a consistently strong experience.”

Traditionally, recruiters have relied on manual tracking using spreadsheets. ModernLoop aims to automate repetitive tasks and optimize interview scheduling.

Automating and Diversifying the Hiring Process

The platform not only streamlines scheduling but also ensures a balanced and diverse panel of interviewers are involved in the evaluation process. This promotes fairness and broader perspectives.

ModernLoop also provides interviewer training through shadowing opportunities and facilitates seamless communication and coordination via Slack, ensuring all parties have access to necessary information.

Funding and Growth

ModernLoop participated in the Y Combinator Winter 2021 cohort and subsequently secured $3.3 million in funding. The investment round was led by Accel, with participation from Webb Investment Network, former Brex leaders, and a product lead from Zoom.

Addressing the Global Talent Shortage

According to U.S. Department of Labor statistics, a global talent shortage of 40 million workers already exists. Projections indicate this gap will widen to over 85 million by 2030. This escalating challenge is attracting entrepreneurs focused on innovative hiring solutions.

Investor Confidence in the Hiring Tech Space

ModernLoop’s approach has garnered significant investor attention. Recently, recruiting platform Gem raised $100 million, achieving a valuation exceeding $1 billion. CodeSignal, specializing in technical assessments, secured $50 million in funding.

The Importance of Recruiting Operations

Amit Kumar, a partner at Accel, experienced the complexities of the hiring process firsthand while serving on the hiring committee at Twitter. He observed the need to collect and analyze candidate data before final decisions were made.

He noted that recruiting operations became considerably more challenging during the COVID-19 pandemic. ModernLoop demonstrates “genuine understanding of the field, a resourceful approach, and a remarkably positive initial response, even with a minimal viable product.”

Early Traction and Customer Validation

“I recognized Lydia’s potential and encouraged her to launch a company,” Kumar stated. “There’s been a lack of focus on the needs of recruiting operations professionals. The early customer feedback Lydia received was exceptional, and we were closing 80% of initial conversations.”

Han proactively reached out to recruiters who had previously contacted her regarding job opportunities, seeking their input on the ModernLoop concept.

Current Clients and Future Expansion

ModernLoop’s client roster includes Benchling, Chainalysis, Ramp, Primer.ai, and VSCO. Chainalysis, for example, experienced growth from 200 to over 300 employees after implementing ModernLoop in March.

The newly acquired funding will be allocated to expanding the engineering team and broadening the customer base.

Adapting to the Remote Work Landscape

“Our company was founded during the pandemic, and the shift to remote work necessitates a remote-friendly interviewing experience,” Han emphasized. “Furthermore, well-trained interviewers are essential for building a successful company.”