Gem Raises $100M to Revolutionize Recruiting | TechCrunch

The Evolution of Hiring and the Rise of Gem

Steve Bartel directly observed the critical importance of effective hiring practices. As one of Dropbox’s earliest employees, he served as a hiring manager, contributing to the company’s growth to over 1,000 personnel within a five-year timeframe.

His acquaintance with co-founder Nick Bushak began at MIT. Bushak subsequently held a leadership position in product engineering at Facebook, where he also gained extensive experience in the realm of talent acquisition.

From Asset-Based to Knowledge-Based Hiring

Both Bartel and Bushak noted a significant shift in hiring methodologies, moving away from an asset-based approach towards one focused on knowledge and skills. This observation prompted them to establish their own venture, Gem, in 2017, designed to address the evolving needs of modern recruitment.

“The traditional measure of a company’s worth – its factories, raw materials, and finished products – has been superseded by the value of its people,” Bartel explained. “Competition for exceptional talent is fiercer than ever, and our goal is to become the ‘Salesforce for hiring.’ ”

A Proactive Approach to Talent Acquisition

Modern recruiting increasingly resembles sales and marketing strategies. Rather than passively awaiting applications, organizations are now proactively seeking out qualified individuals, according to Bartel. Furthermore, many companies are recognizing limitations in the diversity, equity, and inclusivity of their applicant pools.

While platforms like LinkedIn provide access to potential candidates and WorkDay facilitates the management and tracking of the hiring process, Gem functions as a crucial intermediary. It empowers companies to engage in proactive recruitment through methods such as sending targeted email campaigns, hosting virtual events, and strategically allocating advertising resources.

“We enable our clients to fill critical positions up to five times more quickly,” Bushak stated. “By delivering analytics that monitor the entire recruitment lifecycle and track diversity metrics, we can pinpoint potential biases or attrition points within the interview process.”

Securing Series C Funding

The company announced a $100 million Series C funding round on Tuesday, achieving a valuation of $1.2 billion and fueling its continued expansion. ICONIQ led the investment, with participation from existing investors Greylock and Accel, as well as new investors Sapphire Ventures and Meritech Capital. This latest funding brings Gem’s total raised capital to $148 million.

Bartel emphasized that the Series C round was focused on “partnering with investors whose values align with our own.” While the company wasn’t in immediate need of capital, collaboration with investors like ICONIQ and Sapphire will allow Gem to “accelerate growth, broaden its market reach, and build upon its early successes within the enterprise sector, with consideration for international expansion and further product development.”

Investor Perspectives

Matthew Jacobson, a general partner at ICONIQ, initially connected with Gem through a pre-existing relationship with Greylock during the company’s Series B funding. Jacobson’s team, while evaluating various marketing tools, found Gem’s approach to candidate interaction management and talent tracking to be particularly innovative.

“The Gem team is exceptionally talented, remarkably humble, and deeply committed to product excellence,” he commented. “The problem they address – enabling efficient talent sourcing – historically required reliance on platforms like Monster.com and a passive approach to candidate acquisition. The fact that companies within our investment portfolio are actively utilizing Gem speaks volumes.”

Future Growth and Expansion

Gem is currently experiencing strong adoption among large enterprises and is planning international expansion within the next year, targeting Western Europe and select regions of Asia Pacific. The new funding will be allocated to expanding into new markets and bolstering sales and marketing efforts. The company has already doubled its workforce in the first half of 2021.

Boasting a customer base exceeding 800, Gem includes over 100 fellow unicorn companies, such as Gusto, Sift, and Cockroach Labs. Revenue has tripled in the past year, and the customer base has doubled, as reported by Bartel.