CodeSignal closes $25M Series B funding
CodeSignal, a technical assessment platform dedicated to helping companies #GoBeyondResumes in tech recruiting, today announced $25 million in Series B funding. This round, which brings CodeSignal's total funding to $37.5 million, was led by Menlo Ventures with additional investments from Capital One Ventures, CM Ventures, Human Capital, TripHammer Ventures (Alumni Ventures Group) as well as existing investors such as e.ventures,A Capital, Felicis Ventures and Correlation Ventures.
CodeSignal is disrupting the traditional recruiting market, helping recruiters and hiring managers conduct unbiased pre-employment screenings for technical roles more efficiently and at scale. The company's Coding Score™ allows companies to quickly evaluate technical qualifications at the very top of the funnel, just like Credit Score for the lending industry and SAT scores for college admissions. Fueled by 3.5X year-over-year growth, and with millions of assessments conducted on the platforms by customers including Brex, Databricks, Instacart, Robinhood, UpWork and Zoom. CodeSignal will use this round of funding to continue the rapid expansion of its go-to-market team. The new funding will also enable CodeSignal to partner with key players in the technical hiring industry to deliver a more holistic hiring solution.
"The pandemic has further accelerated the digital transformation that has been happening over the past few decades leading to a sharp increase in demand for developer talent. On the other hand, the democratization of education is creating a world in which some of the best developers don't have a traditional background anymore," said Tigran Sloyan, CEO of CodeSignal. "In this new world, the standard method of using resumes as a way to qualify talent at the top of the funnel is failing everyone. Highly qualified candidates are suffering because they get locked behind their resumes, recruiters are suffering because they spend time with unqualified candidates and engineering managers feel the burden of spending countless hours on interviews that lead nowhere. We are committed to creating a product that is streamlining this process, offering a more fair and equitable technical hiring process across organizations of all sizes."
Employment of engineers is projected to grow at a 22% rate, adding approximately 316,000 new jobs in the U.S. CodeSignal helps companies reduce hundreds of hours of engineering and recruiting time by automating the technical screening and phone interview process to focus only on qualified candidates. Through its platform, CodeSignal provides a consistent interview structure to ensure all candidates are being assessed against the same objective standard, thus removing unconscious biases from the process.
"Every company today has become a software company, increasing the demand for technical talent that is perceived to be in short supply," said JP Sanday from Menlo Ventures. "The silver lining of the pandemic is that companies have opened the aperture and are now willing to expand their reach to find the best people in the world to fill these roles, enabling a global applicant pool. CodeSignal has proven to be the leading comprehensive technical assessment platform to help facilitate data-driven, unbiased technical hiring like this at scale."
"CodeSignal is a phenomenal partner because we care about the same things," said Richard Cho, Head of Recruiting at Robinhood. "CodeSignal does the test assessment, the point system, which is agnostic to experiences and the way in which we partnered at scale to make sure it fits into the Robinhood hiring environment – that partnership has been second-to-none."
CodeSignal's Certified Coding Assessments provide an objective measure of a candidate's qualifications, enabling recruiters to compare several scores and strengths at once before hiring decisions are made. The platform allows companies to set their own threshold for qualifications and customize assessments with comprehensive testing options for each team and job opening and safeguards against cheating. By standardizing the technical assessment process, CodeSignal is changing hiring culture and focusing on the applicant who can do the job and do it right.