The funding landscape for startups has been exceptional in recent years. According to Crunchbase, investors poured close to $330 billion into startups in 2021, with late-stage funding reaching $208 billion, nearly double the previous year’s figures. Truework is a prime example of a rapidly growing startup making waves in the investment world.
This trend indicates several key points. Firstly, investors are keen to invest in innovations. Secondly, The New York Times’ prediction of sustained enthusiasm for startups, particularly in the tech sector, has proven true. And thirdly, successful companies should not hesitate to pursue additional funding rounds.
After successfully securing series A and series B funding, Truework has raised an additional $50 million in series C funding in 2022.
However, it’s not just Truework’s significant funding success that sets it apart. The company’s success is rooted in its ability to identify and simplify a problem – specifically, employment verification. This was a relatively unknown issue that few were addressing, and Truework’s solution effectively safeguards sensitive identity information for consumers and strengthens relationships between companies and applicants.
Truework’s Entry Into the Income and Employment Verification World
When applying for a job, it’s common for interviewers to inquire about your work history. Prospective employers typically request details about previous employers and the dates of employment.
At this point, the employer faces a choice: trust the candidate’s word or invest time and effort in verifying the accuracy of their work history.
The second option is clearly advisable. A 2020 ResumeLab survey revealed that 27% of professionals admit to lying about their job experience during interviews. This means that there is a significant chance that a candidate’s work history may not be entirely truthful.
This is where Truework comes in. Through its proprietary technology and extensive network, Truework can verify individuals’ employment and income records. Employers simply input candidate information into the platform, and if candidates consent to their work history being released, Truework initiates the verification process and delivers the results to the employer.
Improving Hiring Processes for Both Sides of the Recruitment Experience
Truework’s benefits extend beyond protecting employers from applicant fraud. The company’s innovative solution also enhances data security for new hires and streamlines the onboarding process, saving significant time.
Truework uses secure HTTPS with TLS 1.2, the same encryption technology relied upon by financial institutions. Additionally, candidates must authorize the release of their data, ensuring their control over the process. With continuous high-level threat scans, Truework ensures that all data is securely stored and only accessed when necessary.
Truework’s efficient processes result in approximately 80% of pre-employment verification checks being completed within a 48-hour window. This rapid verification speed, aided by partnerships with over 150 payroll providers and access to a database of 35+ million employee records, contributes to smoother onboarding experiences for new employees.
According to a Harvard Business Review article, only 12% of workers rate their employers highly for onboarding practices, indicating room for improvement, particularly in the area of swift income and employment verification.
Beyond Work Verification: Truework’s Entry Into Other Markets
Having established its value, Truework is now focused on significant growth. The demand for pre-employment verification data is not limited to employers. This information is also valuable to mortgage lenders, consumer-lending businesses, and property managers.
Truework’s system facilitates the secure digital transfer of private records, allowing lenders, property managers, and other third parties to promptly access the verification they require without jeopardizing individual data privacy. This streamlined process enhances conversion rates and prevents unauthorized access to sensitive information.
Truework: A True Fintech Standout
Looking ahead, Truework plans to utilize the $50 million funding to support product development, expand its team, and further establish itself as a secure and user-friendly platform for income and employment verification. The company continues to onboard a growing list of clients, including Fairway Independent Mortgage, Caliber Home Loans, Octane, Carvana, and Encompass.
Ultimately, Truework serves as a testament to the potential for startups to address significant challenges and garner substantial support from investors, offering inspiration to aspiring entrepreneurs and founders.
Image Credit: Edmond Dantès; Pexels; Thank you!
