The last few years have been great for niche startups that need money from outside sources. Crunchbase says that in 2021, investors funded just shy of $330 billion. With $208 billion, nearly twice as much as in 2020, those seeking late-stage funding fared particularly well. Truework is a prime example of an investment-friendly hot ticket company.
A few facts are suggested by this pattern. First and foremost, investors are eager to invest in new ideas. Second, The New York Times was correct when it said that there would be a continued interest in startups, particularly tech startups. Thirdly, companies that are already doing well shouldn't be afraid to raise more money.
Truework returned after demonstrating its merit and receiving funding from both series A and series B. Consequently, in 2022, its founders were able to secure $50 million in series C funding.
Truework's substantial revenue, however, is not the only factor that warrants a significant mention. It's the fact that, like the majority of startups, they were successful because they identified and simplified a problem, specifically employment verification. Many people were unaware of this issue, and few were addressing it. Customers' sensitive identity information is protected by their solution, and business relationships with applicants are strengthened.
The introduction of Truework to the world of income and employment verification When applying for a job, the interviewer will inquire about your previous employment. Everyone anticipates this. The approximate dates you began and ended your employment with a company are just a few of the many questions prospective employers ask.
Your potential employer now has two options. The employer can rely on your word or conduct extensive research to confirm the accuracy of your work history.
Clearly, no one would suggest the first choice. This is demonstrated by a 2020 ResumeLab survey. It would appear that 27% of professionals admit to lying during job interviews. This indicates that a candidate's work history may not be in good standing one in four times.
Therefore, the best choice is the second one. However, it can be fraught with difficulties, such as delaying the procedure and putting candidate information in jeopardy as it travels between third parties.
Truework enters the picture at this point. Truework is able to verify the employment and income records of individuals through its extensive network system and proprietary technology. Employers only need to access the centralized platform and enter candidate information. After that, the hiring manager inquires about candidates' level of comfort with their work history being made public. Truework begins the verification process and sends the employer the results in this case.
Improving Hiring Procedures for Both Sides of the Recruitment Process It is important to note that Truework's inherent advantages extend beyond preventing applicant fraud for employers. New employees are also protected by Truework's innovative solution. More streamlined employee onboarding, enhanced data security, and significant time savings are among Truework's most significant benefits.
Truework, for instance, safeguards data using the same secure HTTPS protocol with TLS 1.2 that financial institutions rely on. Additionally, employees maintain control at all times because they must authorize data release. Truework ensures that all data is stored and accessible only when necessary by conducting high-level threat scans 24 hours a day, seven days a week.
Truework's speed is not hampered by this high level of protection, though. Within a constrained 48-hour turnaround, approximately four fifths of all pre-employment verification checks are completed. Due to its relationships with more than 150 payroll providers and access to a database containing more than 35 million employee records, Truework's processes are so quick.
What role does this play in onboarding? If you've ever struggled to get hired as a new employee, you know how frustrating it can be to wait for a long time. The quicker your background checks are done, the sooner you can start working and earning money.
Only 12% of workers, according to a Harvard Business Review article, would give their employers a good grade for onboarding. Therefore, there is a lot of room for improvement across the board, beginning with faster verification of income and employment.
Beyond the Validation of Work: Truework's Entry into Other Markets Truework, like many other startups, had to demonstrate its value initially. It did, and it started to gain traction. Then, why is a series C funding round necessary? The business is expanding rapidly.
It turns out that data from pre-employment verification are useful for more than just employers. The same kind of data can be very helpful to property managers, mortgage lenders, and other businesses that lend money to consumers.
Think back to the last time you tried to rent an apartment through a property management company or applied for a large loan. It's likely that you were required to provide some kind of information about your salary and possibly your workplace. If the information you provided was written on paper, who knows who saw it? Before it was used to determine whether you were a good or questionable renter or loan applicant, many people could have manually transferred your private data.
Private records can be transferred digitally with greater safety thanks to Truework's system. Lenders, property managers, and other third parties ultimately receive the necessary verification right away. They can thus avoid the time-consuming verification procedure and boost their conversion rates as a result. The system shields private information from prying eyes all the while. It is only used for what it was made for.
Truework What does the company's future hold? Ryan Sandler, the company's co-founder and CEO, said that the $50 million will be used to support planned product development, hire more people, and help the company grow as a reliable, secure, and easy-to-use income and employment verification platform.
Truework is adding more businesses to its list of clients in the interim. Fairway Independent Mortgage, Caliber Home Loans, Octane, and Carvana are a few of its mainstays at this point. Because loan processing teams can use Truework to verify any US employee, Encompass has also joined the partnership.
In the end, Truework is a source of motivation for business owners and founders who are just beginning their search for capital investments. Investors will not hesitate to put their faith and money behind your success if you can successfully solve one problem.
Post a Comment