London HRtech Veremark picks £2M funding to eradicate CV fraud globally
London-based global pre-employment screening service, Veremark, helps companies verify employee credentials. In a recent development, the company just announced that it picked up $2.8 million (nearly £2 million) in an oversubscribed seed funding, which brings its total investment raised to date to $3.8 million.
Oversubscribed seed funding round
This came in as a follow-on investment from ACF Investors, Triple Point Ventures and SOV Ventures. The oversubscribed seed funding round was completed entirely over Zoom, adds the company. It came from global investors and operators within the space including Prasanna Sankar, co-founder of US HR Tech Unicorn Rippling; Drew Austin, the founder of recently acquired HR chatbot solution Wade & Wendy; Rika Christanto an angel/seed investor and part of the Accel Starter programme who also participated in the round, and UK Regtech entrepreneur Charlie Delingpole who founded ComplyAdvantage, one of the Veremark’s clients.
Also, new institutional investment came from Vulpes Investment Management in Singapore where Veremark has an office alongside other regional presence in London, India, Philippines, Hong Kong and Australia.
Veremark plans to use this funding to increase its expansion in the pre-employment screening market reportedly worth $16 billion per year and offers both a standalone web platform and an API offering that lets other service providers plug the Veremark’s verification engine into their service and instantly provide pre-employment screening services to their clients. This comes to use to meet the growing trend of Employer of Record platforms or Freelance marketplaces that want to help clients get greater confidence around potential hires.
Daniel Callaghan, CEO, said: “Veremark’s aim is to help companies hire with greater confidence. Our platform is about bringing speed, simplicity and security to the hiring market. It doesn’t matter whether you are hiring in Bermondsey, Bangalore or Baltimore – we enable companies to check the claims and credentials of those they are looking to bring onboard into their companies. We see this round as an initial stepping stone in the start of transforming the overall ‘Trust’ market and build a new category around credential management to drive greater efficiency in the hiring market and beyond”
Tim Mills, Managing Partner, ACF Investors, commented: “The team at Veremark are helping to reshape pre-employment checking, creating savings and time efficiencies for companies and empowering employees. Through the use of their integrated and interactive platform they are able to give employers the confirmation they need as well as providing candidates their data back to use for further checks. With ever-growing demand around the world for higher levels of compliance, at ACF Investors we are excited to be supporting Veremark as they grow and deliver the best experience for businesses and their future employees.”
Over 800 per cent growth
Employee credential fraud is a major problem for organisations. It is reported that a quarter of all CVs are fraudulent in some way, and almost half of all people claiming to have a new PhD have a fake degree. Failing to account for these discrepancies can have major financial and regulatory consequences for companies.
Launched in late 2019, Veremark creates digital employment credentials or ‘career passports’, which have saved clients upwards of 50% of traditional delays and costs. These can also be used by prospective employees for future job opportunities.
Its automated digital-first solution that instantly lets companies, large or small, order a wide range of checks like employment history, academic, criminal and credit records checks anywhere in the world. Despite the pandemic, Veremark has grown more than 800 per cent in the last 12 months, delivering thousands of checks per month to its range of global clients; with more than a $1m ARR in monthly sales.
It is also leading the charge in the use of verifiable digital employment credentials that reduce the need for time-wasting and repetitive checks saving clients upwards of 50 per cent of traditional delays and costs. These verifiable credentials enable companies to gift back to candidates the ownership of their own verified career and personal data to use as they like.