Paraform, a recruitment platform focused on serving startups, has raised a $3.6 million seed round led by venture capital firm A*, founded by tech entrepreneur Kevin Hartz. The funding will enable Paraform to expand its efforts to connect startups with a network of independent recruiters who were impacted by the wave of tech layoffs in 2022 and 2023.
During this period, the article notes that tech firms had to cut up to half of their recruitment teams as part of broader headcount reductions. Paraform sees an opportunity in tapping into this pool of experienced recruiters who have since branched out to start their own businesses. The platform aims to help startups source talent and access a wider talent network through these independent recruiting professionals.
Paraform charges startups a listing fee to post jobs on the platform, as well as a success fee when a hire is made. This model ensures a commitment from both startups and recruiters to the two-way marketplace. The platform not only works with early- and late-stage startups, but also larger companies that want to leverage recruiter networks without having to hire full-time recruitment teams.
Since its pre-seed round in March 2023, Paraform has seen its revenue grow 10-fold, onboarded over 100 new customers, and expanded its team. The company generated more than $1 million in revenue with a three-person team in its first year of operations.
In addition to the new seed funding, Paraform plans to use the capital to expand across the U.S. and internationally, as well as to hire more engineers and operators to support its growing customer base. The startup also intends to explore opportunities beyond software engineering and go-to-market roles, branching out into areas like research, science, manufacturing, and defense.
Paraform believes that recruiting is a “very human-to-human process” and aims to enhance this element by leveraging AI technology to help recruiters better understand the needs of hiring managers and identify the most suitable candidates.
