brighthairLtd., a startup that seeks to change the way people are hired inside organizations, today announced a $20.5 million Series B investment led by 01 Advisors, with participation from Index Ventures and the Zoom Apps Fund.
The fact that the Zoom Apps Fund is involved is no coincidence, as the company is based on taking information from Zoom-based interviews and using the data to make hiring decisions. Ben Cesar, the company’s co-founder and CEO, says that while most business decisions are based on data, the hiring decision has been an obvious exception that involve a lot of emotion and gut feeling. He is hoping to change that.
“Our goal is to change the way teams are built. In business, it is expected that any important decision will be based on hard data and rigorous analysis. And yet in hiring that is probably the most important thing a company can do about its future. For everyone, decisions are made largely based on gut feeling and memories and memories,” Cesar told me.
He said that most companies are not very consistent about the way they hire and that BrightHair brings some order to the recruitment exercise and thus improves the experience for everyone involved.
The company records and transcribes each interview, which is conducted on Zoom, allowing the interviewer to focus solely on the candidate, and not on taking notes or other tasks. In addition, throughout the interview, the software will offer important questions to ask the candidate, which helps to ensure that each interview is conducted in a consistent manner.
After each interview, the software surfaces and provides insights that help companies as they hire new employees and ultimately continually improve recruitment overall.
Dick Costolo, managing partner at Lead Investor 01a, says one of the reasons he liked what Brighthair was doing was because he believed they were solving a fundamental recruiting problem, when he ran from 2009-2015. Was running Twitter during a period. of excessive growth.
“One of the things we noticed on Twitter was all this unconscious or unintentional bias in the interview process or even in the promotion process,” he said. This led them to seek a more data-driven way to make better decisions, something that’s much easier to do with tools like BrightHair. “That would have solved a lot of the issues we have around subjectivity and unconscious bias,” he said.
During the pandemic when a lot of business was going online, the idea of interviewing on Zoom became far more common than it was when the company launched in 2019.
“Six months or seven months before the pandemic, just depending on the problem, hiring was very important, not really fix in fundamental ways, but ultimately 2020 was a very interesting year because of the pandemic, and eventually a bunch Is. Changes that have been big catalysts for our business,” said Cesar.
As the company grows, Cesar says it’s using the product to diversify recruiting within its organization, but it’s just one tool in its arsenal. “We don’t address diversity in hiring, but what our product does is create a more equitable process,” he said.
He further added, “If you are evaluating candidates inconsistently how can you have an approval process? […]? If we have no basis or grounds for our decisions, we may hold back or hold ourselves accountable. Otherwise, it’s literally our subjective memory and our feelings, which is really a very difficult thing to do. “