Talent.com raises $120 million to bolster its AI-powered recruiting platform

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During the pandemic, recruiting has become increasingly remote as companies eschew job fairs and other personal recruiting initiatives in favor of alternatives. According to a LinkedIn survey, companies are planning to adopt hiring processes that combine virtual and in-person steps due to the associated cost and time savings. But priorities in HR have largely not changed. Jobvite’s 2021 poll found that improving hiring quality, improving time-to-hire, increasing retention rates and increasing the talent pipeline remain the top recruiting priorities of recruiters.

According to a PwC survey, seven out of ten companies plan to increase their HR technology spending this year to help them hire. But the same research questioned the effectiveness of these investments. More than 80% of respondents said their HR teams struggle with technology adoption challenges, in part related to planning stages failing to get the necessary stakeholders, including executives and management, to ask the right questions to answer.

However, HR technology vendors claim that their solutions can solve organizational challenges if implemented with a clear plan. For example, Talent.com, a recruiting platform based in Montreal, claims to send more than 80 million applicants to employers each month and provide 30 million jobs to those candidates. Talent.com, founded in 2011 by Benjamin Philion, CEO Lucas Martinez, and Maxime Droux, says it uses AI to improve the relevance of job searches for job seekers and help companies hire new team members.

AI for recruitment

Prior to the launch of Talent.com, formerly called Neuvoo, Philion was a risk analyst for the National Bank of Canada. Lucas Martinez was a business development manager at EF Education First, an education company specializing in language training, while Droux was an asset allocation analyst at investment firm GLG Partners.

Like many other recruiting platforms (e.g. Monster, Indeed), Talent.com offers a search page where job seekers can search for opportunities and set alerts for certain positions. Candidates can compare salaries by looking for average salaries of job titles similar to theirs, and calculate home wages in hourly, monthly, and yearly increments, using a tax calculator that breaks down the tax deductions they can expect.

“Talent.com uses data from our users’ clicks to predict the likelihood of a click based on search terms, user profiles, and job titles… The training dataset contains more than 800 million items,” Philion told VentureBeat via email. . †[The] model gives up to 40% more clicks compared to a keyword-only search algorithm.”

On the business side, companies can post jobs and filter candidates, tracking the progress of job recruiting campaigns in a dashboard. The company uses programmatic advertising and a network of media outlets to quickly fill functions by purchasing programmatic ads on websites that match a target profile to find candidates for companies.

Programmatic ads automate the process of buying and selling ad spaces through an exchange that connects advertisers — in this case, Talent.com — with publishers. Using algorithms that analyze characteristics of publishers’ readers, taking into account factors such as location and demographics, programmatic platforms set bid prices for the first impression (ie, the first view an ad receives). After the impression is sold, it is sent to the publisher’s website to be displayed.

“Open features cost companies money — our goal is to fill that void by making these connections,” Philion told VentureBeat via email. “The labor shortage has been a huge problem for many companies in recent years and has been exacerbated by the pandemic.”

Expanding Market

To demonstrate that the potential of poor HR technology adoption doesn’t deter investors, Talent.com announced today that it has raised $120 million in a Series B round led by Inovia Capital with the participation of Caisse de dépôt et placement du Québec, Investissement Québec, Climb Ventures, BDC Capital, Fondaction and HarbourVest Partners. The support brings Talent.com’s total capital raised to $150 million, including $30 million in new Technology & Innovation Banking Group debt financing at BMO Financial Group.

As for future growth, the trick will be to convince potential clients that Talent.com’s 400-employee solution is superior to competitive recruiting offers. Among them is HireEZ, which provides AI-powered tools for applicant recruitment and profiling. Sense is also developing AI-powered recruiting and recruiting solutions for businesses, just like Phenom People

A 2021 Sage survey found that 24% of companies are currently using AI for recruiting and 56% plan to use AI by 2022. While the risks can be high, studies have shown that the algorithms used in recruiting can introduce bias, including anti-Black bias, leading cities like New York City to regulate them — companies are eager to pursue technologies that can help them navigating a historically challenging job market.

From January 2021 to October 2021, venture capitalists invested $9.2 million in HR tech startups, a 130% jump from the 2020 total, according to PitchBook data.

“Our goal is to capture a significant portion of a huge market that is going online. We are therefore more focused on growing our platform than on profitability at this stage of our evolution,” said Philion. “This will be even more so now that we have raised a significant amount of equity. The company has been around for over 10 years and the founders have managed to grow it to over $100 million in revenue…with very little financing.”

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This post Talent.com raises $120 million to bolster its AI-powered recruiting platform

was original published at “https://venturebeat.com/2022/03/16/talent-com-nabs-120m-to-bolster-its-ai-powered-recruitment-platform/”