Recruitment Start-Up Uses AI to Cut Costs, Raises $5m in Funding

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Recruitment tech start-up Beamery has revealed that it has raised a total of  $5 million – approximately £4 million – in Series A funding. The company seeks to use AI alongside marketing software and customer relationship management to cut the amount of time and money that companies spend on recruitment. Funding was received from Index Ventures with the participation of Endred Capital Partners, GP Ventures and LocalGlobe. Beamery also closed a $2m Seed round in June last year.

The firm, which is based in London, intends to use this capital to increase its number of staff and to open new offices in the USA in addition to its UK product development branch and engineering capabilities. Additionally, Beamery has announced that new features and products, better support, faster infrastructure, and an overall improved experience will result from this funding.

By incorporating AI with its software and customer relationship management, Beamery enables companies focus on specific candidates for posts more effectively and efficiently. The company has stated that it can lower the cost of the hiring process by almost 40% and cut the amount of time the process takes by around a third.

Beamery has spoken on the benefits of using AI for recruiting previously. The company has stated that it’s not the cutting of jobs, but rather the possibility to accelerate hiring, remove manual tasks and enable recruiters to be more productive that gives the technology its draw. Examples given of areas AI can enhance a system include automatically sending follow-up emails and contacting candidates when relevant roles open up notifying teams when candidates are actively job-hunting amongst others.

A number of companies are reported to already be benefiting from this service, with firms such as Facebook, Dropbox, VMware, GitHub, Criteol, Dennis Publishing, House of Fraser and Shop Direct using Beamery.

Head of global leadership recruiting at Facebook, Courtney Erin states: “Beamery is a global tool that will allow us to capture everything and improve our strategic advantage for years to come.”

Abakar Saidov, Beamery CEO and co-founder, stated: “In the modern economy, companies are starting to recognise that creating a world-class talent function is one of the most important differentiators to their success. Beamery transforms how businesses interact with talent, and is a primary system of record for this relationship.”

Besides the direct opportunity for companies from the gambling industry using this service, this also highlights the point made by CXOTalk recently on how companies will need to discover ways in which new technology can benefit them. This is a perfect example of how outsourcing to start-ups allows the benefits of new technology developments to impact a company without an established business having to rework and renovate all of its processes.