less than a year after lifting $25 million in Series B funding, Technical Evaluation Company codesignal Announced $50 million in Series C funding to offer new features for its platform that help companies make data-driven hiring decisions to find and test engineering talent.
Similar to attracting a large investor lead for its B round – Menlo Ventures – has partnered with Index Ventures to lead the C round. Menlo rejoined and was joined by Headline and A Capital. The round brings CodeSignal’s total fundraising to $87.5 million.
Co-founder and CEO Tigran Sloan got his attempt at finding an engineering job for the company from the experience of his co-founder and friend, Aram Shtakhtsyan. Both from Armenia, both went separate ways to college, Shtakhtsyan stayed in Armenia and Sloyan came to America to study at MIT. After that he started working in Google.
Sloane told Nerdshala, “As companies were hiring myself and my classmates, Aram was trying to get his resume done, but he was not paying attention as he went to college, even though he was the greatest programmer ever. ” . “Hiring talent is the number 1 problem. Companies say they have, but here was the best engineer, and no one would bring him in.”
He, along with Sophia Back, started CodeSignal in 2015 as a self-driving interview platform that directly measures skills regardless of an individual’s background. Just as people need to test a driver to obtain a license, Sloane calls the company’s technical assessment technology a “flight simulator for developers,” which gives candidates a simulated assessment of their skills and scores and highlights. Comes back with the strength gone.
The need for companies to hire engineers has led to CodeSignal growing 3.5x in revenue year over year and gathering a customer list that includes Brex, Databricks, Facebook, Instacart, Robinhood, Upwork and Zoom.
Sloane said the company hasn’t touched on the funding it received in its Series B yet, but wants to jump at the opportunity to work with Nina Achdjian, partner at Index Ventures, whom she’s known for several years from their time together at Google. Was. To work together and for Achdjian to be on the company’s board is something “I couldn’t pass up,” Sloane said.
When Achadjian moved to venture capital, he helped Sloan connect with advisors and angel investors while keeping an eye on the company. Hiring engineers is “mission critical” for tech companies, but it became more apparent to them that engineering tasks have become essential for all companies, Achadjian explained.
Doing due diligence in the space, he saw traditional engineering cultures using CodeSignals, but then also non-traditional companies like banks and insurance companies.
“Their traction was undeniable, and many of our portfolio companies were using CodeSignal,” she said. “It’s rare to see a company accelerate growth at the level they are at.”
The US Department of Labor Statistics estimates that there is already a Global talent labor shortage of 40 million workers, and that number will exceed 85 million by 2030. Achadjian says engineering jobs are also expected to increase during that time, and with all those roles and applicants, it will be more important than ever to screen candidates, as will the candidates’ potential wherever they are. To apply from there.
The new funding enabled the company to launch its integrated development environment for candidates to interact with relevant assessment experiences such as code, files, and a terminal on a single machine, to showcase their skills, while Be able to preview as well. their application. At the same time, employers are able to assign similar coding tasks to each candidate based on the position open.
In addition, Sloyan intends to triple the company’s headcount over the next few months and expand into other use cases for skills assessment.