Tiger Global Invests in Seekout for Diverse Talent Acquisition

SeekOut Secures $115 Million in Series C Funding

SeekOut, a company focused on assisting enterprises in building more diverse workforces, has announced the completion of a $115 million Series C funding round. This financing was spearheaded by Tiger Global Management.

Valuation and Growth

The investment has valued the Seattle-based startup at over $1.2 billion. Since its establishment in 2017, SeekOut has now raised a total of $189 million. The company experienced a substantial 300% revenue increase in the past year, resulting in an annual recurring revenue (ARR) between $25 million and $50 million.

Company Origins and Pivot

The foundations of SeekOut were laid in 2016 by former Microsoft personnel – Anoop Gupta, Aravind Bala, John Tippett, and Vikas Manocha. Initially, they developed a messaging platform offering detailed information about individuals involved in email communications.

However, after recognizing that clients were primarily interested in the data itself, rather than the messaging functionality, the company underwent a strategic shift in 2017.

Addressing Talent Acquisition Challenges

SeekOut currently concentrates on aiding talent acquisition teams in identifying “hard-to-find and diverse talent.” The increasing demand for its services is demonstrated by its customer base expansion from 500 to over 1,000 within the last 11 months.

Customer Base and Market Impact

Anoop Gupta, co-founder and CEO, stated the company maintains high customer retention rates and significant growth. SeekOut currently collaborates with six of the ten most highly valued companies in the U.S., serving clients across sectors including technology, pharmaceuticals, aerospace, defense, and banking.

Gupta emphasized the evolving landscape of work, stating that effective hiring, retention, and development of employees are crucial for organizational success.

The Talent-360 Platform

SeekOut has developed a database containing hundreds of millions of profiles, powered by an AI-driven talent search engine and “deep interactive analytics.” This engine utilizes public data, natural language processing, and machine learning to comprehensively assess candidate expertise.

The platform integrates information from public profiles, GitHub, research papers, patents, employee referrals, company alumni networks, and applicant tracking systems (ATS).

Expanding Beyond Technical Talent

While initially focused on technical roles, SeekOut has broadened its scope to assist in finding diverse candidates and individuals with specialized skill sets. It claims to achieve this with “unprecedented speed and precision” through a blind hiring process.

This method reduces bias by allowing companies to filter out potentially identifying information like names, photos, or educational institutions. SeekOut also provides recruiters with instant access to candidate contact details.

Retention and Talent Optimization

Gupta explained that SeekOut’s Talent-360 platform not only facilitates the discovery of diverse talent but also enhances retention by identifying the most suitable candidates from the outset.

He highlighted the shift in power towards employees, who prioritize purpose, flexibility, compensation, and growth opportunities.

A New Talent Optimization Offering

SeekOut is introducing a new talent optimization offering, recognizing the opportunity to assist companies in both attracting and retaining quality personnel. This builds upon the company’s established strengths in talent acquisition.

The company believes that with the rise of remote and hybrid work models, and the increasing importance of diversity, developing internal talent and broadening hiring strategies are becoming essential.

Growth and Future Outlook

Over the past year, SeekOut has tripled its headcount to approximately 120 employees and anticipates a similar expansion in 2022. The company is nearing cash flow break-even, with rapid revenue growth supporting its investment initiatives.

Investment Details and Employee Benefits

The latest funding round included participation from Founders Circle Capital, alongside existing investors Madrona Venture Group and Mayfield. Founders Circle’s involvement enabled a secondary offering, allowing employees to sell a portion of their vested shares.

Gupta expressed his satisfaction that employees could benefit from their contributions to SeekOut’s success.

Industry Perspective

John Curtius, Partner at Tiger Global, acknowledged the evolving approach to talent management. He stated that SeekOut is a leader in talent optimization, providing a best-in-class solution for businesses to hire, grow, and retain their workforce.

Talent as a Strategic Priority

Gupta believes that talent recruitment and retention are no longer solely the responsibility of HR departments. He emphasized that securing the right talent is critical for success and is becoming a key concern for CEOs and boards of directors.

He noted that data is readily available throughout enterprises, but often lacking when making decisions about personnel.

Technology and Innovation

S. Somasegar, Managing Director at Madrona, highlighted SeekOut’s data-driven strategy as a key factor in attracting investment. He praised the company’s comprehensive profile building and semantic search engine, enabling hiring managers to effectively define their talent needs and identify suitable candidates.