KarmaCheck Secures $15M in Series A Funding, to be Provided

SAN FRANCISCO, April 07, 2022 (GLOBE NEWSWIRE) — KarmaCheck, a first-of-its-kind company that uses data-driven technology to bring truth, speed and efficiency to background checks, today announced that it has earned $15 million dollars in Series A funding. The round was led by Velvet Sea Ventures, an operator-led, multi-stage venture capital firm dedicated to accelerating digital transformation and digital ownership. Other investors include Parameter Ventures, One Way Ventures, NextView Ventures and Dash Fund.

Founded by LinkedIn co-founder Eric Ly, KarmaCheck’s mission is to improve the vetting and onboarding process for corporate clients and create meaningful professional opportunities in today’s economy. According to KarmaCheck’s proprietary research, approximately 44% of information provided by LinkedIn users is false. And with many businesses transitioning to a fully remote workforce, the ability to verify the truth about people’s identities has never been more necessary for today’s businesses.

Using proprietary data access and processing, KarmaCheck aims to provide the fastest background checks in the industry, dramatically speeding up hiring and onboarding processes by up to 350%, giving employers a competitive edge in hiring, while protecting identities and personal information. candidates. As a result, background checks can be completed in minutes instead of days or weeks. This speed allows employers to generate higher revenue faster in today’s hyper-competitive talent environment. Powered by AI technology to judge speed and accuracy, KarmaCheck provides employers with real-time actionable insights, completely reinventing and disrupting the background check industry.

“In a fully remote and digital work environment, employers are looking for quality hires in a time when it has become easier to hide behind a false identity,” said Eric Ly, founder of KarmaCheck. “Our AI-based technology uses previously collected data about an individual, allowing companies to accurately and efficiently cut through fabricated information. Not only does this give we a competitive advantage, but also employers when it comes to hiring the right candidates.

KarmaCheck already works with hundreds of the largest companies in North America, including McDonald’s, Domino’s, Recruiter.com, and more. Using KarmaCheck’s first-of-its-kind AI-powered technology, leading pizza brand Domino’s found that over 96% of company background checks were instant and 99% of job applicants passed. completed their onboarding process – an increase from their 30% completion rate. Other companies KarmaCheck has worked with include Clover Health, NexRep, and Instant Teams.

“KarmaCheck is the epitome of an industry disruptor and we’ve already seen their ability to outperform their competitors by three to five times,” said Mike Lazerow, managing partner and co-founder of Velvet Sea Ventures. “The revolutionary technology-based approach to background checks, led by Eric Ly, makes KarmaCheck a true force to be reckoned with in a slow-paced, traditional industry.”

About KarmaCheck
KarmaCheck has reinvented background checks with a data-driven technology approach that brings the truth to the internet and provides the fastest background check for employment needs. Employers and employees benefit from real-time actionable notifications, so hiring decisions are made sooner. KarmaCheck’s mobile background check platform is easy to access, reliable and compliant. To visit www.karmacheck.com to learn more.

About Velvet Sea Ventures
Velvet Sea Ventures is an operator-led venture capital firm that goes beyond capital to help entrepreneurs realize their visions. Built by a family of entrepreneurs, VSV combines seed-stage capital investment through growth with hands-on strategic advice and support. Velvet Sea Ventures’ current portfolio companies include Scopely, eToro, Liquid Death, LeoLabs, Autograph, Strigo, SuperRare, Elementus, and Pixel Vault. A full list of portfolio companies can be viewed here.

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