The company is already in Dizraptor’s portfolio since Feb 10. New offerings are possible in the future
About the Company
Checkr is an automated background check company. The company uses the same data sources as traditional background check companies but can usually turn it around a lot more quickly than traditional providers. Checkr uses artificial intelligence and machine learning to classify large amounts of data used in background checks.
The company was founded in 2014 and is headquartered in San Francisco, California. As of December 2021, Checkr performs 30 million background checks a year for its 15,000 clients, including Uber, Lyft, Instacart, Netflix, Papa John’s, Airbnb and Coinbase.
In 2022, Checkr was named to the Forbes Cloud 100 list of the most promising and fastest-growing cloud companies for the fifth consecutive year. The list included many well-known companies that went public: Zoom, CrowdStrike, Zscaler, Anaplan, Elastic. Checkr investors include Y Combinator (invested in Airbnb, Flexport, Reddit), IVP (invested in Snapchat, Twitter, Slack), Accel (invested in Spotify, Dropbox, Slack).
The market for automated verification services for jobseekers and employees is expected to grow 8% a year to reach $8B by 2026. For 2021, there are three times as many employees with flexible schedules as those with full-time jobs. And by 2023, more than half of people are projected to work flexible hours. Companies need to process resumes quickly and hire employees quickly to compete for good talent.
As many companies have begun to move online, there has been a need to conduct more extensive candidate screening remotely, which is problematic without an automated process. The Checkr product helps solve this problem. Also, the growing number of startups and companies around the world is driving demand for the Checkr platform because the service reduces costs and shortens screening times.
Financials and Valuation
In an interview CEO Daniel Yanisse said that as of September 2021, Checkr's revenue is well above $200M and the company became profitable this year for the first time.
A public company that provides a similar service is Paycom. Its capitalization is $25B as of December 2021. Paycom had an IPO in 2014 at $15 a share and has grown 27x in 7 years, as of December 17, 2021, their stock is $407.
As of December 2021, Checkr has raised $550M in total funding. In September 2021 it raised $250M in a Series E financing round that more than doubled its previous valuation and brought it to $4.6 B. In 2019 after the Series D financial round, it was valued at $2.2B.
Checkr has not publicly disclosed financials. As a result, it is unknown whether the company is profitable or has a path to profitability.
Checkr competes in the background check industry and faces a competitive landscape, which may affect Checkr’s long-term viability.
Checkr Raises $250 Million at $4.6 Billion Valuation, Checkr Blog, September 2021
Customer Testimonials and Case Studies by Industry, Checkr website, December 2021
Checkr Named to the Forbes Cloud 100 for Fifth Consecutive Year, Checkr website, Aug 2022
Checkr Reaches $4.6 Billion Valuation With New Funding Round, Bloomberg. August 2021