Checkr is a startup that operates in the field of background checks and pre-employment screening. Founded in 2014 by Daniel Yanisse and Jonathan Perichon, Checkr has quickly become a prominent player in the background screening industry, offering modern and technology-driven solutions to help companies make informed hiring decisions while ensuring compliance with relevant regulations.
Checkr’s background check platform uses a variety of data sources to verify a candidate’s background, including criminal records, driving records, and education records. The platform also uses machine learning to identify potential risks and to flag candidates for further review.
Checkr’s background check platform is used by a variety of organizations, including Uber, Lyft, and Airbnb. The company has raised over $650 million in funding from investors such aRowe Price, Coatue, Accel, and Y Combinator.
Background Checks Made Modern:
Checkr specializes in providing background check services to businesses of all sizes. Its platform utilizes advanced technology and automation to streamline the traditionally manual and time-consuming process of conducting background checks on job applicants. By digitizing and automating various aspects of the background screening process, Checkr helps companies expedite their hiring workflows and make more informed decisions about prospective employees.
Services Offered by Checkr:
Checkr’s suite of services covers a range of background checks, including criminal record checks, identity verification, education and employment verifications, motor vehicle record checks, and more. These checks provide employers with valuable insights into an applicant’s history, helping them assess a candidate’s suitability for a particular role and ensuring workplace safety.
Key Features of Checkr
Checkr’s technology-driven approach offers several benefits to both employers and applicants:
Speed and Efficiency: By automating the background check process, Checkr significantly reduces the time required to complete screenings, allowing companies to expedite their hiring processes.
Candidate Experience: Checkr offers a user-friendly applicant portal where candidates can securely provide necessary information and documentation for background checks.
Compliance: Checkr is committed to maintaining compliance with laws such as the Fair Credit Reporting Act (FCRA) in the United States. The platform helps employers navigate complex regulations to ensure legal and ethical screening practices.
Real-Time Tracking: Employers can track the progress of background checks in real-time through the Checkr platform, enhancing transparency and communication.
Customization: Checkr’s services can be tailored to fit the unique needs of different industries and job roles, ensuring that employers receive relevant and accurate information.
History of Checkr
The history of Checkr is a journey marked by innovation, technology, and a commitment to transforming the way background checks are conducted. Founded in 2014 by Daniel Yanisse and Jonathan Perichon, the startup emerged as a response to the need for more efficient and accurate pre-employment screening processes.
Checkr’s story began with the recognition that traditional background check processes were often slow, cumbersome, and prone to errors. The founders, Yanisse and Perichon, aimed to revolutionize this space by leveraging technology to streamline background checks, making them faster, more accurate, and user-friendly for both employers and candidates.
In its early days, Checkr operated out of a small San Francisco office. The founders secured seed funding from notable investors, including Y Combinator, to kickstart their mission of modernizing the background screening industry. The startup’s focus on innovation and technology set the stage for its rapid growth.
Checkr’s breakthrough came through its innovative use of automation and technology in background checks. The startup developed proprietary software that digitized various aspects of the screening process, enabling the automation of data collection, verification, and reporting. This not only reduced the time needed for background checks but also improved accuracy and compliance.
Checkr recognized the emerging gig economy’s need for on-demand background checks due to the flexible nature of gig work. The startup adapted its technology to cater to the unique demands of the gig economy, providing real-time background checks that aligned with the pace of gig worker hiring.
As Checkr’s reputation grew, the startup forged partnerships with various industries, including technology, retail, healthcare, and transportation. Its technology-driven solutions appealed to companies looking to expedite their hiring processes without compromising on the quality of background checks.
Checkr’s commitment to innovation led to the development of new features and services over time. The startup expanded its offerings to include various types of background checks, such as criminal history, motor vehicle records, employment verifications, and more. It continued to enhance its technology to provide a comprehensive suite of screening services.
Given the legal complexities of background checks, Checkr emphasized maintaining compliance with regulations such as the Fair Credit Reporting Act (FCRA) in the United States. The startup’s dedication to ethical and compliant screening practices set it apart as a responsible and reliable partner for employers.
Checkr’s innovative approach has had a significant impact on the background check landscape. By leveraging technology, data analytics, and automation, the startup has made background checks more efficient, accurate, and accessible. Its journey from a startup with a vision to a respected player in the pre-employment screening field underscores the potential of using technology to transform traditional industries.
Business Model of Checkr
At its core, Checkr offers three primary products catering to different stages of the talent acquisition lifecycle:
Background Screening: A thorough review of applicants’ criminal history, driving records, credit reports, and other public data essential for making informed hiring decisions.
I-9 & E-Verify Solutions: Automated compliance management ensuring legal eligibility to work in the United States and avoid costly fines or reputation damage due to immigration violations.
Global Identity Verification: Instant identity validation utilizing machine learning algorithms and government databases to verify identities and prevent fraudulent activity.
Checkr generates revenue primarily through subscription plans tailored to varying customer sizes and usage requirements. The company offers tiered pricing schemes starting at $29.99 to $79.99 per check for organizations with complex hiring demands. Customers enjoy flexible payment terms and transparent pricing structures without hidden costs or surprise additions.
To optimize the user experience, Checkr has developed robust APIs (Application Programming Interfaces) allowing seamless integration with popular Applicant Tracking Systems (ATS), Human Resource Management Systems (HRMS), and other related software commonly used by HR teams. This interoperability eliminates manual data entry bottlenecks and streamlines information flow between disparate systems, thereby reducing errors and increasing efficiency.
Furthermore, Checkr recognizes the critical nature of security and privacy concerns surrounding sensitive candidate information. To alleviate potential risks, the company adheres to strict regulatory guidelines and implements rigorous encryption protocols safeguarding data.
In addition to protecting confidential data, Checkr also prioritizes responsible innovation by regularly introducing new features and services designed to improve the overall background check process.
Another crucial aspect of Checkr’s success stems from its expansive network of partnerships spanning multiple industries and geographies. Collaborations with prominent tech giants like Google and Slack enable mutually beneficial integrations, expanding both brand recognition and functional capabilities. Meanwhile, strategic alliances with staffing agencies and HR associations strengthen industry credibility and facilitate knowledge sharing across the broader talent acquisition community.
In conclusion, Checkr’s business model harmoniously balances cutting-edge technology, adaptive pricing strategies, extensive partner networks, and a dedication to ethical considerations. Together, these elements contribute to the company’s remarkable growth trajectory and sustained market leadership within the dynamic world of employment screening and verification.
Funding, Valuation and Investors of Checkr
Checkr has raised over $679 million in funding over 8 rounds. Its latest funding round was a Series E round on Sept, 2021, for $250 million. The round was led by Durable Capital, alongside new investors Fidelity Management & Research Company LLC, and Franklin Templeton with participation from all major current investors including BOND Capital, Khosla Ventures, IVP, T. Rowe Price, Coatue, Accel, and Y Combinator.
The post money valuation of the startup is at $4.6 billion.
Here is a breakdown of Checkr’s funding rounds:
- Series A: $9 million in Nov, 2014 led by Accel.
- Series B: $40 million in March, 2016, led by Y Combinator Continuity Fund. Other investors participating include Institutional Venture Partners and Accel, as well as David Spector and Elad Gil, two early investors in the company
- Series C: $100 million in Apr 2018, led by T. Rowe Price Associates, Inc. with participation from existing investors Accel and Y Combinator.
- Series D: $160 million in Sept, 2019, led by T. Rowe Price Associates, Inc., joined by Bond, Coatue, and long-time investors Accel, Y Combinator, and IVP
- Series E: $250 million in Sept 2021, led by Durable Capital, alongside new investors Fidelity Management & Research Company LLC, and Franklin Templeton with participation from all major current investors including BOND Capital, Khosla Ventures, IVP, T. Rowe Price, Coatue, Accel, and Y Combinator.
Checkr’s funding has been used to develop its background check platform, to expand its customer base, and to hire new employees. The company has plans to use its latest funding to continue to grow its business and to expand into new markets.
The startup’s funding is a good indicator of the company’s potential. The company has been able to attract significant investment from leading venture capital firms, which is a sign that investors believe in the company’s business model and its future prospects.
Checkr’s funding also shows that the market for background check services is growing. The company has been able to raise significant funding even though the background check market is already crowded with established players.
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