KarmaCheck, a background-checking startup founded by LinkedIn’s Eric Ly, has secured $45 million in a funding round led by Parameter Ventures, with participation from NextView Ventures, PruVen Capital, and Velvet Sea Ventures.
Founded in 2019, KarmaCheck has grown significantly under Eric Ly’s leadership, boasting over 100 employees and reporting a seven-fold revenue increase in 2023. Eric Ly commented on the funding round, highlighting the challenges in traditional hiring processes and the opportunity to simplify background checks for both employers and job candidates.
Based in San Francisco, KarmaCheck announced on Thursday its plans to utilize the funds to accelerate technological advancements and expand into new industry verticals. The company specializes in leveraging technology to streamline HR processes, including criminal background checks and education verifications, which have seen increased demand due to the rise of remote work post-pandemic.
Clients of KarmaCheck include prominent names such as Domino’s Pizza, McDonald’s, and various players in healthcare and the gig economy. The startup claims to deliver results nearly twice as fast as traditional methods.
KarmaCheck competes with established players like Checkr, First Advantage, and Sterling Check, with the latter two recently merging in a $2.2 billion deal.