June 2, 2015: Video recruiting technology company HireVue has racked up some pretty impressive clients during its decade-long existence—Chipotle Mexican Grill, Hilton Worldwide, Marathon Petroleum, UnitedHealth Group, and Urban Outfitters.
Now, it’s parlaying its 500-or-so customer references—along with an anticipated $50 million in sales this year—into a $45 million funding round led by Technology Crossover Ventures.
The money will be used to expand the company’s latest offering, a coaching and training platform called Team Acceleration that combines video with predictive analytics. So far, the Utah-based company has raised $93 million, but the founder won’t discuss its valuation.
“How do you keep people on message, make sure they are aligned with career goals, or teach them how to handle [sales] objections,” asked HireVue founder and CEO Mark Newman. “We can bring scale to these interactions,” he said.
Recruiters use HireVue’s core platform to create a series of questions that candidates consider via video, using the digital camera on a personal computer or mobile device to record their answers. Not only does this standardize the information collected—eliminating potential bias introduced by individual interviewers—it helps hiring managers prescreen more applicants. That’s quite impactful when you consider that some organizations spend upwards of $1 billion annually identifying and onboarding new talent, Newman estimated.
The latest twist, Team Acceleration, extends HireVue’s recruiting approach to coaching and training scenarios.
Video and written interviews are used to assess baseline knowledge, typically for customer-facing processes such as lead-generation techniques to competency with software coding or engineering skills, Newman said. As skillsets evolve, so do the assessments. “It becomes a collaborative learning tool,” he said. Over time, performance profiles can be created for employees.
Technology Crossover Ventures principal Nari Ansari, who joined HireVue’s board along with this investment, said in a statement:
HireVue’s customers have a unique consumer-like passion for the technology. Not only are they realizing a direct and measurable return on investment; they are simultaneously driving a more efficient and effective process around the strategic acquisition, assessment and development of talent to drive their organizational agendas.
HireVue’s other backers include Sequoia Capital, Granite Ventures, Investor Growth Capital, Peterson Ventures, and Rose Park Advisors’ Disruptive Innovation Fund.