Contract, self-employed and temporary jobs are on the rise in developed markets, with some 85% of the worldwide workforce, 2.7 billion folks, estimated to be on some type of hourly wage quite than flat wage.
In the present day, a startup that helps corporations supply these sorts of candidates is saying a spherical of funding to assist meet that demand. Fountain, which has constructed a platform to seek out and display screen candidates for subject roles — not knowledge-worker desk jobs, however hourly work that seemingly has you in your ft — has raised $23 million, cash that will probably be utilizing to proceed increasing its platform, the sorts of providers it gives to its clients and its geographical footprint.
Fountain already has some scale: The corporate at the moment sources and processes greater than 1 million inbound candidate functions every month, filling some 150,000 jobs within the course of, CEO and founder Keith Ryu mentioned in an interview.
Along with constructing engines to supply candidates by way of a variety of channels, comparable to conventional job boards, social media channels, a firm’s personal web site and extra, Fountain then helps with screening, interview scheduling, background checks (utilizing third-party suppliers for this half), speaking with the candidate, dealing with the paperwork and, lastly, onboarding.
Led by DCM, this newest spherical additionally included a doubtlessly strategic backer, the Chinese language recruitment web site 51job, in addition to Origin Ventures, Uncork Capital and others that aren’t being named. This brings the full raised by Fountain, which beforehand was known as OnboardIQ and had been incubated in Y Combinator, to $34 million.
Fountain’s enterprise targets two predominant sorts of employers. First, ridesharing corporations like Uber, supply startups like Postmates and dwelling providers suppliers like Thumbtack all operate by advantage of their swimming pools of “gig” employees, self-employed individuals who select their very own working hours and dip into the platforms for assignments after they have time to meet them.
However the problem of discovering good folks for subject jobs isn’t venture-backed startups’ alone. The second huge class that Fountain faucets for enterprise is the broader pool of retail and meals business companies which have lengthy relied on hourly employees but in addition discover it exhausting to supply certified and dependable folks.
Between these two, Ryu mentioned that clients cowl huge “gig economy” companies like Uber Eats, Caviar and Cabify; massive quick meals franchises, together with Taco Bell, Burger King and KFC chains; and a variety of different clients that use Fountain’s APIs for white-label providers and desire to not be named. (I believe it’s attention-grabbing that Uber Eats is on Fountain’s buyer record, however Uber isn’t.)
Fountain was based in 2015, arguably on the peak of demand for recruiting gig financial system employees. Within the years since then, and particularly in current occasions, calls for have moved away for these corporations from aggressive growth (bringing on, for instance, a lot of new drivers), and into extra worthwhile operations. Ryu mentioned that the knock-on impact for Fountain has not been a discount, however a change, by way of the providers required, with some corporations opting to outsource, whereas prior to now they may have dealt with recruitment in-house.
“Tright here has been some consideration to decreasing working prices per driver, together with driver acquisition,” he mentioned. “That is where we have been getting involved, using our size [and reach] to reduce the cost to the employer.”
This additionally has had the impact of additionally seeing Fountain change up its personal technique to make extra of an effort to focus on extra conventional companies which can be based mostly round hourly staff: not contractors, however nonetheless very a lot within the subject.
Because the unequalled chief in gig hiring and recruiting, Fountain is already reshaping the best way billions of job seekers work together with employers, says David Chao, co-founder and associate at DCM, in a assertion. Fountain has been exceptionally capital environment friendly and has best-in-class buyer retention, provides Kyle Lui, associate at DCM.
Fountain isn’t disclosing its valuation with this spherical. In its final spherical, again in 2017, it had a very modest $40 million value on it, though given its development since then (it had sourced 5 million candidates in two years in 2017; now it sources 1 million every month) that is prone to be considerably increased.