Rapid revenue growth and an oversubscribed financing round signal that both customers and investors are embracing disruption in the industry

SAN FRANCISCO, June 27, 2024 /PRNewswire/ -- KarmaCheck, a technology-based solution for background checks, credentialing, and compliance, announced today that it has raised $45 million in a Series B funding round led by Parameter Ventures, with participation from PruVen Capital, Velvet Sea Ventures, GC1 Ventures, and NextView Ventures. The company will leverage the funding to accelerate development of its proprietary technology platform, scale its exceptional service levels to more customers and candidates, and expand into new industry verticals.

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KarmaCheck was founded by Eric Ly, one of the co-founders of LinkedIn. For over two decades, Ly has worked to remove barriers that stand between talent and professional opportunity. His commitment to this space led him to form KarmaCheck in 2019.

The Series B funding round follows a year of significant achievements and milestones for KarmaCheck including:

  • Revenue growth of over 600%
  • Expansion of its customer experience team by more than 300%
  • Delivery of millions of screenings

"Background checks and credentialing have long been among the most frustrating steps of the hiring process for both candidates and hiring managers," said Eric Ly, co-founder and CEO of KarmaCheck. "But that doesn't have to be the case. KarmaCheck focuses heavily on both technology innovation and expert-led customer service. This combination, coupled with our AI-forward approach, is unique in the industry and enables us to deliver not only fast and accurate results, but also the industry's best candidate experience."

KarmaCheck's platform offers the advanced technology that one would expect from such an industry pioneer. Staffing administrators benefit from intuitive, automated dashboards and built-in API integrations to applicant tracking systems. Candidates stay informed through a mobile-friendly interface and can easily schedule clinic-based screenings through the platform. These innovative features lead to faster results, lower costs, and a better experience for both candidates and employers. Head-to-head comparisons have shown that KarmaCheck returns results up to three times faster than competitors with no loss of accuracy. 

"As a healthcare staffing firm, there are several factors we need to consider when choosing our background check vendor, including accuracy, speed, scope, cost, and candidate experience," said Pete Hietpas, CEO of PRN Healthcare. "KarmaCheck excels across all of these areas. Our administrators love the platform and the responsive support, candidates like the transparency and easy scheduling, and everyone appreciates the fast and accurate screenings. Switching to KarmaCheck has resulted in 85% faster background screenings and 12 hours per week saved for our team."

The company has seen incredible demand for its solution in highly credentialed industries like healthcare, where speed-to-hire is a significant competitive advantage and traditional background check processes are arduous and time-consuming.

"KarmaCheck stands out as a leader in a critical sector ripe for new approaches. Its innovative product, experienced management team, and commitment to customer success aligns closely with our investment philosophy," said Douglas Romanoff, Partner at Parameter Ventures. "We couldn't be more excited to support KarmaCheck as it brings its transformative solutions to professional background checks, enabling greater speed, simplicity, and transparency fit for the modern workforce."

About KarmaCheck
KarmaCheck is reimagining background checks and credentialing by combining the industry's best technology with exceptional customer support. With powerful APIs and integrations, a mobile-friendly candidate experience, and rapid customer service response times, KarmaCheck delivers accurate background checks faster. Find out why companies across healthcare, staffing, and industrial sectors are switching to KarmaCheck at www.karmacheck.com.

Media Contact
Inkhouse for KarmaCheck
KarmaCheck@Inkhouse.com 

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