Jul
10
2018
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Foursquare brings on Liz Ritzcovan as chief revenue officer

Foursquare has just hired Liz Ritzcovan as Chief Revenue Officer.

Ritzcovan hails from BazaarVoice, where she also served as CRO. She previously held CRO positions at Sizmek and Parade Media Group, and before that, spent time at Yahoo, Time Inc, and Interbrand.

Though Foursquare has been around since 2009, things have changed a lot for the company. What started as a consumer-facing app to log and share location information has become a SaaS company focused on helping brands understand their customer’s real-world habits and convert those habits into meaningful transactions and experiences.

That started with the unbundling of the legacy Foursquare app into Foursquare (a Yelp competitor centered around recommendations) and Swarm (a social location check-in app). As of 2016, both apps have more than 50 million active users, which—along with insights from partners—has in turn yielded the data necessary to create enterprise tools.

For example, Pinpoint by Foursquare (an ad product) has more than half of the Ad Age 100 as advertisers, and Attribution by Foursquare (a measurement product) has doubled its revenue in 2017. And that doesn’t include the Pilgrim SDK and Places API, which helped contribute to Foursquare’s 50 percent revenue growth year over year for the past three years.

Ritzcovan is aware that, despite the growth of e-commerce, 90 percent of consumer spending and memorable experiences happen in the real world. But getting clients, usually internet-facing companies, to understand that is her new great challenge.

Here’s what she had to say in her announcement blog post:

So what is my first priority as CRO? Client centricity. Foursquare needs to deepen our connection with our partners: explaining to business leaders why it’s critical to leverage more than a single Foursquare solution—be it ad campaigns with Pinpoint, measurement with Attribution, or location-based CRM and messaging with our Pilgrim SDK and Places API—by taking all of these parts together and connecting the dots. Foursquare is more and more about bundling technology licensing, mapping capabilities, and marketing optimization in a suite of solutions. It’s the reason I joined, to help lead the team into packaging these broad “solution sets” for leading organizations and brands.

Jun
21
2018
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Disrupting the paycheck, Gusto’s Flexible Pay allows employees to pick when they get paid

People should get paid for work they have done. It’s a pretty simple principle of capitalism, but a principle that seems increasingly violated in the modern economy. With semi-monthly paychecks, the work an employee does on the first day of the month won’t be paid until the end of the third week — a delay of up to 21 days. That delay is despite the massive digitalization of bank transfers and accounting over the past few decades that should have made paychecks far more regular.

Gusto, a payroll and HR benefits provider focused on small businesses, announced the launch of Flexible Pay today, a new feature that will allow its payroll users to select when they receive their income for work already completed. The feature, which must be switched on by an employer, will cost employers nothing out-of-pocket today. The launch is limited to customers in Texas, but will expand to other states in the coming year.

As Gusto CEO Joshua Reeves explained it to me, a kid mowing lawns in a neighborhood has a much more visceral connection to income than the modern knowledge economy worker. Cut the grass, get cash — it’s that simple. He also pointed out, with irony, that terminated employees experience much better payroll service than regular employees: they have to be paid out on their last day of work outside of the standard paycheck schedule. Reeves and his team wanted to offer that flexibility and convenience to every worker.

Flexible Pay allows users to choose when they get paid, outside of typical paycheck schedules

The key to this new feature has been Gusto’s increasing data about small businesses. Gusto now serves 1 percent of all small businesses in the U.S., and it has comprehensive access to its customers’ financial and payroll data. With integrations to time sheet services and proper risk modeling, Gusto is able to predict exactly what salary a worker has already earned, and can front the money at minimum risk to itself.

One major challenge for Gusto was how to reconcile the books of the employer with the irregular paycheck schedules desired by employees. Gusto handles all the logistics transparently, including tax withholding, so that for employers, the paycheck distribution looks and feels “normal” on its books.

That means that Gusto is effectively loaning money to companies, since it is paying payroll in advance. Gusto is funding those loans off its balance sheet today, but over time, the company expects to create a financial facility to underwrite the product.

For Reeves, Flexible Pay is “the right thing to do.” He believes that this new level of flexibility will empower workers to control their financial lives. In the long run, as more users get habituated to the product and its convenience, he hopes that the feature will draw other employers into using Gusto based on employee demand.

The unfortunate reality in the American workforce is that huge numbers of workers live paycheck-to-paycheck, by some counts as many as 80 percent. A bill can come due just a day or two before a paycheck hits, but without cash in a checking account, people often have to resort to predatory financial products like payday loans or high-interest credit cards in order to make ends meet. Flexible Pay is one step in the right direction of fighting for workers to get the money they justly deserve.

Jun
20
2018
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Beamery closes $28M Series B to stoke support for its ‘talent CRM’

Beamery, a London-based startup that offers self-styled “talent CRM”– aka ‘candidate relationship management’ — and recruitment marketing software targeted at fast-growing companies, has closed a $28M Series B funding round, led by EQT Ventures.

Also participating in the round are M12, Microsoft’s venture fund, and existing investors Index Ventures, Edenred Capital Partners and Angelpad Fund. Beamery last raised a $5M Series A, in April 2017, led by Index.

Its pitch centers on the notion of helping businesses win a ‘talent war’ by taking a more strategic and pro-active approach to future hires vs just maintaining a spreadsheet of potential candidates.

Its platform aims to help the target enterprises build and manage a talent pool of people they might want to hire in future to get out ahead of the competition in HR terms, including providing tools for customized marketing aimed at nurture relations with possible future hires.

Customer numbers for Beamery’s software have stepped up from around 50 in April 2017 to 100 using it now — including the likes of Facebook (which is using it globally), Continental, VMware, Zalando, Grab and Balfour Beatty.

It says the new funding will be going towards supporting customer growth, including by ramping up hiring in its offices in London (HQ), Austin and San Francisco.

It also wants to expand into more markets. “We’re focusing on some of the world’s biggest global businesses that need support in multiple timezones and geographies so really it’s a global approach,” said a spokesman on that.

“Companies adopting the system are large enterprises doing talent at scale, that are innovative in terms of being proactive about recruiting, candidate experience and employer brand,” he added.

A “significant” portion of the Series B funds will also go towards R&D and produce development focused on its HR tech niche.

“Across all sectors, there’s a shift towards proactive recruitment through technology, and Beamery is emerging as the category leader,” added Tom Mendoza, venture lead and investment advisor at EQT, in a supporting statement.

“Beamery has a fantastic product, world-class high-ambition founders, and an outstanding analytics-driven team. They’ve been relentless about building the best talent CRM and marketing platform and gaining a deep understanding of the industry-wide problems.”

Apr
12
2018
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Background checks pay for Checkr, which just rang up $100 million in new funding

Criminal records, driving records, employment verifications. Companies that use on-demand employees need to know that all the boxes have been checked before they send workers into the world on their behalf, and they often need those boxes checked quickly.

A growing number of them use Checkr, a San Francisco-based company that says it currently runs one million background checks per month for more than 10,000 customers, including, most newly, the car-share company Lyft, the services marketplace Thumbtack, and eyewear seller Warby Parker.

Investors are betting many more customers will come aboard, too. This morning, Checkr is announcing $100 million in Series C funding led by T. Rowe Price, which was joined by earlier backers Accel and Y Combinator.

The round brings the company’s total funding to roughly $150 million altogether, which is a lot of capital in not a lot of time. Yet Checkr is very well-positioned considering the changing nature of work. The company was born when software engineers Daniel Yanisse and Jonathan Perichon worked together at same-day delivery service startup Deliv and together eyed the chance to build a faster, more efficient background check. The number of flexible workers has only exploded in the four years since.

So-called alternative employment arrangements, in the parlance of the Bureau of Labor Statistics, including gig economy jobs, have grown from representing 10.1 percent of U.S. employees in 2005 to 15.8 percent of employees in 2015. And that percentage looks to rise further still as more digital platforms provide direct connections between people needing a service and workers willing to provide it.

Meanwhile, Checkr, which has been capitalizing on this race for talent, has its sights on much more than the on-demand workforce, says Yanisse, who is Checkr’s CEO. While the 180-person company counts Uber, Instacart, and GrubHub among its base of customers, Checkr is also actively expanding outside of the tech and gig economy, he says. It recently began working with the staffing giant Adecco, for example, as well as the major insurer Allstate.

At present, all of these customers pay Checkr per background check. That may change over time, however, particularly if the company plans to go public eventually, which Yanisse suggests is the case. (Public shareholders, like private shareholders, love recurring revenue.)

“Right now, our pricing model for customers is pay-per-applicant,” says Yanisse. “But we have a whole suite of SaaS products and tools” — including an interesting new tool designed to help hiring managers eradicate their unwitting hiring biases — “so we’re becoming more like a SaaS” business.

While things are ticking along nicely, every startup has its challenges. In Checkr’s case, one of these would seem to be those high-profile cases where background checks are painted as far from foolproof. One situation that springs to mind is the individual who began driving for Uber last year, six months before intentionally plowing into a busy bike path in New York. Indeed, though Checkr claims that it can tear through a lot of information within 24 hours — including education verification, reference checks, drug screening — we wonder if it isn’t so fast that it misses red flags.

Yanisse doesn’t think so. “Overall background checks aren’t a silver bullet,” he says. “Our job is to make the process faster, more efficient, more accurate, and more fair. But past information doesn’t guarantee future performance,” he adds. “This isn’t ‘Minority Report.’”

We also ask Yanisse about Checkr’s revenue. Often, a financing round of the size that Checkr is announcing today suggests a revenue run rate of $100 million or so. Yanisse declines to say, telling us Checkr doesn’t share revenue or its valuation publicly. “It’s still a bit early,” he says. “There’s this obsession with metrics in Silicon Valley, and we just want to make sure we’re focused on the right things.”

But, he adds, “you’re in the ballpark.”

Correction: An earlier version of this story incorrectly listed Visa as a customer.

Mar
06
2018
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Wethos looks to match freelancers with non-profits

 With the boom of tech startups and the digitization of incumbent industries, there is a talent shortage in Silicon Valley But no sector has felt that shortage more than the non-profit space. Wethos is looking to change that. The company was founded by Rachel Renock, Claire Humphreys and Kristen Ablamsky with the express intent to connect freelancers with non-profit organizations fighting… Read More

Oct
04
2017
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LinkedIn to launch Talent Insights, a new analytics tool, as it dives deeper into data

 LinkedIn, the Microsoft-owned social network for the working world with some 500 million members, has made a large business out of recruitment — with some 11 million job listings on the site at any given time, and the recruitment market providing the company with its largest source of revenue. Now it is taking another step ahead in building out that business with a new product:… Read More

Apr
25
2016
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OpenStack Foundation launches its first cloud admin certification exams to combat talent shortage

os_austin It’s no secret that it’s still hard to find good tech talent, and that’s definitely the case for the kind of complex and highly specialized skill set it takes to administer an OpenStack cloud. To grow this talent pool and to allow admins to show off their OpenStack skills, the OpenStack Foundation today announced the launch of its first certification program for OpenStack… Read More

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