ZipRecruiter Gets $63 Million in Series A MoneyTuesday, August 26, 2014
ZipRecruiter, a hiring platform for small- and medium-sized businesses, has secured $63 million in Series A funding, the first raise for the Santa Monica company since launching in 2010.
The round was led by Institutional Venture Partners with support from Basepoint Ventures and Industry Ventures. Chief Executive Ian Siegel said he was thoughtful of where the company took money because he believed in the developing L.A. tech community. IVP, located in Menlo Park, previously spearheaded financing rounds in Snapchat and the Honest Company. ZipRecruiter marks Santa Monica VC firm Basepoint’s first investment.
“We’ve been approached every month we’ve been in business, but we were really proud of bootstrapping,” Siegel said. “But we’ve evolved from the scrappy startup, and now look at ourselves as the stewards of a new idea.”
The idea is that unlike LinkedIn or Monster.com, ZipRecruiter is a “job board distribution service,” streamlining the often cluttered online e-recruitment process by offering employers single-click job postings and online interview tools. On the other side, job seekers can simultaneously distribute their resumes to hiring managers through ZipRecruiter’s database.
“This year, we’re going to sign up the same number of people as we’ve aggregated in all time,” Siegel said.
The company expects to exceed 100 percent revenue growth this year, registering more than 30,000 new monthly employers. Siegel declined to share the company’s revenue numbers but said it was in the tens of millions.
The Series A funding will go toward developing new products, pursuing acquisitions and scaling services to cater to ZipRecruiter’s growing customer base. With 150 employees, the company said it plans to double its team over the next year. Siegel said ZipRecruiter also recently signed a lease to a 40,000-square-foot office space off Third Street Promenade, where the company expects to move later this year.