KarmaCheck raises $45M to speed up background checks and credentialing
One of the company's key sectors is the healthcare staffing industry
In the background check industry, there hasn’t been a strong emphasis on the overall experience of the customer and the candidate. Instead, most organizations aren’t very happy with their background check vendors, making background checks and credentialing one of the most frustrating parts of the hiring process for both employers and job seekers.
KarmaCheck announced a $45 million in a Series B funding round on Thursday so it can make the background check and credentialing process faster, more accurate, and more positive all around.
"We’re doing that by developing the most innovative and easy-to-use technology platform. It includes all of the features and functionality that prospects have been asking for, including an intuitive dashboard for administrators that can integrate with their application tracking system, a mobile-first interface for candidates that keeps them updated on the status of their results," Mark Lieberwitz, co-founder and chief product officer at KarmaCheck, told VatorNews.
The KarmaCheck platform
KarmaCheck features include a chat functionality that enables administrators to send a chat directly through the platform and get a rapid response from one of the company's customer service representatives or credentialing experts when needed.
The company incorporates a team of experienced professionals to ensure the accuracy of its results, as well as a mobile-friendly interface that simplifies the process for candidates, making it more convenient and transparent.
Currently, KarmaCheck’s candidate-focused technology and onboarding automation is able to cut turnaround time by up to 46% for minimized drop-offs and increased on-time starts. As a result, the company has seen customers achieve 40% savings in cost and operational efficiencies through a streamlined workflow and one-stop shop vendor approach.
In the past year, the company has seen revenue growth of over 600% and expansion of its customer experience team by more than 300%, while delivering millions of screenings.
Healthcare staffing
KarmaCheck focuses on a few industries currently, but one key customer segment for the company is the healthcare staffing industry.
"Healthcare staffing agencies work with MSPs and health systems to get health professionals on the floor as quickly as possible. The background checks and credentialing required for these nurses are complex and the requirements are different for each health system," explained Lieberwitz.
"We also work with the broader staffing industry, directly with healthcare systems, and with employers in industries like IT, technology, professional services, and industrial."
Part of the problem in healthcare is that the screenings required for healthcare professionals are long and complex, as healthcare institutions are typically forced to utilize three to six vendors, and sometimes more, to complete and compile all necessary checks to get a healthcare professional, like nurses, to bedside.
Delays for these healthcare professionals to start can result in high patient-to-healthcare professional ratios leading to worse care for patients. Delays can also cause understaffing issues when spikes in care are needed, such as a local disease outbreak, and missed revenue for health systems.
"Due to the complexity of screenings, pulling together results from multiple vendors, and desire for low-cost solutions, the user experience suffers, completion of credentialing takes longer, and candidate/customer service often falls by the wayside," said Lieberwitz.
"KarmaCheck tackles these challenges by offering a solution that leverages the strengths of both technology and human expertise in a one-stop shop platform. Our platform utilizes automation powered by artificial intelligence to streamline tasks and expedite the overall process. This translates to faster turnaround times for businesses and healthcare institutions."
Expanding to new verticals
The new funding round, led by Parameter Ventures, with participation from PruVen Capital, Velvet Sea Ventures, and NextView Ventures, brings the total investment in KarmaCheck to $64 million.
The company will deploy the funding to accelerate development of its technology platform, including speeding up the credentialing process.
"We’re also committed to providing the best customer service to both businesses and candidates, which is evident by the 300% growth of our Customer Experience team. This funding gives us the opportunity to continue growing this team and delivering on our promise of providing automation where it’s needed and the human touch where it matters," said Lieberwitz.
The money will also be used to expand into new industry verticals, including the business, professional, IT, clerical, and industrial staffing industries. For the industrial sector, for example, faster turnaround times on thorough background checks are essential for filling safety-sensitive roles without compromising on project timelines. In staffing, streamlining the hiring process with a mobile-friendly interface helps attract qualified candidates quickly, while maintaining security through accurate background checks.
KarmaCheck’s ultimate goal is to revolutionize the background check and credentialing industry by ushering in a new era of modernization to a space that Lieberwitz says is "long overdue for innovation."
"We envision a future where the entire process is faster, simpler, and completely transparent for both businesses and candidates. Our success will be measured by our ability to achieve this goal and continue to establish ourselves as the leading force within the background check market. By streamlining the process and ensuring accuracy, KarmaCheck aims to create a win-win situation for all parties involved, ultimately contributing to a more efficient and effective workforce."
(Image source: karmacheck.com)
