Funding Santa Monica

ZipRecruiter Raises $63MM Series A Round

On Tuesday, ZipRecruiter announced that they had closed a $63MM Series A Round, led by Institutional Venture Partners. ZipRecruiter “allows small businesses, individual employers and recruiters to easily reach the right candidates and make the best hiring decisions with single click postings to 50+ leading job networks and online interview tools, all while eliminating bulky and expensive software. ZipRecruiter uses their machine-learning algorithm to take a haystack of jobseekers and mine for the needle employers are targeting.”1 This is a pretty unique move for a number of reasons. Firstly, ZipRecruiter is incredibly profitable already. According to TechCrunch, ZipRecruiter generates, “high tens of millions in yearly revenue.”2 ZipRecruiter got to this point without a single dollar of venture money. The company’s CEO, Ian Siegel, published a blog post on Tuesday, outlining the move – or at least claiming to outline the move. Essentially, the post offers only one reason as to why they raised the round:

This investment will allow us to further strengthen our already top-notch customer support team, bring on more hiring experts and, most excitingly, to branch out into new products that will help HR managers do their jobs even more easily.3

  1. Business Wire, “ZipRecruiter Raises $63MM Series A Led by Institutional Venture Partners,” 26 August 2014  
  2. Ingrid Lunden, TechCrunch, “Job Platform ZipRecruiter Takes Its First Outside Funding, $63M Led By IVP,” 26 August 2014  
  3. ZipRecruiter Blog, Ian Siegel, “We Just Raised $63 Million. Here’s Why,” 26 August 2014