– Tech layoffs in 2022 and 2023 led to many recruiters being laid off, prompting them to start their own businesses in recruitment.
– Paraform, a recruitment platform for startups, raised a $3.6 million seed round to tap into the pool of laid-off recruiters and help startups source talent.
– The company plans to expand globally, expand its platform to cater to different industries, and use AI technology to enhance the recruitment process.
In 2022 and 2023, tech firms laid off up to half of their recruitment teams, leaving many recruiters without a job. One startup, Paraform, saw an opportunity to tap into this pool of laid-off recruiters who have since started their own businesses. The company recently raised $3.6 million in funding led by A* to help startups source talent and access a broader network.
Paraform charges a listing fee and a success fee when a hire is made. The company has already supported more than 200 companies in hiring for roles, and has seen a 10x increase in revenue since its pre-seed round. The new funding will help Paraform expand across the U.S., hire more engineers and operators, and enter new markets globally.
The platform also works with larger in-house talent teams, allowing them to leverage recruiter networks without having to hire full-time recruiters. Paraform aims to enhance the recruiting process by using AI technology to help recruiters identify the best candidates based on hiring managers’ preferences. The company plans to expand its platform to cater to roles beyond software engineering and go-to-market jobs at startups.
Paraform hopes to double its team size this year and expand into new countries and markets. The company believes that recruiting is a very human-to-human process, and AI technology can enhance this process by providing insights to recruiters on candidate selection.