CodeSignal closed a $25 million Series B as the San Francisco assessment platform looks to disrupt the recruiting market.
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The new round was led by Menlo Ventures with additional investments from Capital One Ventures, Triphammer Ventures (Alumni Ventures Group), Human Capital and CM Ventures, as well as existing investors e.ventures, A.Capital, Felicis Ventures1 and Correlation Ventures.
Founded in 2015, CodeSignal attempts to make hiring engineers more efficient. The company’s platform evaluates and measures a candidate’s qualifications, letting recruiters compare several scores and strengths at once, and move beyond relying on a traditional resume. The platform also allows companies to set their own qualifications and customize assessments with testing options.
The need for talent
Companies constantly are searching for more engineering talent, and this year only has made hiring more complex.
“No one would tell you there’s a surplus of engineers at their company,” said J.P. Sanday, partner at Menlo Ventures.
While the pandemic has changed hiring, it also has shown companies engineering talent is everywhere and has removed geographical limitations due to the fact everyone is working from home, said co-founder and CEO Tigran Sloyan. That helped CodeSignal realize 3.5 times year-to-year growth, as the company has more than doubled its customer base in the last 18 months, Sloyan said.
CodeSignal, which has just under 50 employees, plans to use the new funding to expand its go-to-market team. Sloyan expects the company to have three times as many employees at the end of 2021.
Competitors and opportunity
More are realizing the importance of assessing talent and skills correctly, something noticeable by the fact LinkedIn has introduced the LinkedIn Skill Assessments feature and Pluralsight launched SkillIQ.
Despite the competition, Sloyan said, CodeSignal’s B2B model helps it differentiate itself from others and the company may even move beyond just assessments and create additional tools to try to empower learning by showing engineers what coding skills they are lacking.
“The opportunity here is massive,” Sloyan said.
So massive that Sloyan said he believes it can grow as an independent in the space and see an IPO in about five years.
Sanday said he does not want to limit where the company can go.“The platform’s relevant because it solves an acute pain point,” Sanday said. “The rest will take care of itself.”
Illustration: Li-Anne Dias.
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