September 17, 2021 – 13:24 AMT
PanARMENIAN.Net – In less than a year after raising $25 million in Series B funding, technical assessment company CodeSignal – created by Armenian engineers – announced a $50 million in Series C funding to offer new features for its platform that helps companies make data-driven hiring decisions to find and test engineering talent, TechCrunch reports.
Similar to attracting a big investor lead for its B round — Menlo Ventures — it has partnered with Index Ventures to lead the C round. Menlo participated again and was joined by Headline and A Capital. This round brings CodeSignal’s total fundraising to $87.5 million.
Co-founder and CEO Tigran Sloyan got the idea for the company from an experience his co-founder and friend Aram Shatakhtsyan had while trying to find an engineering job. Both from Armenia, the two went in different paths for college, with Shatakhtsyan staying in Armenia and Sloyan coming to the U.S. to study at MIT. He then went on to work at Google.
“As companies were recruiting myself and my classmates, Aram was trying to get his resume picked up, but wasn’t getting attention because of where he went to college, even though he was the greatest programmer I had ever known,” Sloyan said. “Hiring talent is the No. 1 problem companies say they have, but here was the best engineer, and no one would bring him in.”
They, along with Sophia Baik, started CodeSignal in 2015 to act as a self-driving interview platform that directly measures skills regardless of a person’s background. Like people needing to take a driver’s test in order to get a license, Sloyan calls the company’s technical assessment technology a “flight simulator for developers,” that gives candidates a simulated evaluation of their skills and comes back with a score and highlighted strengths.
The need by companies to hire engineers has led to CodeSignal growing 3.5 times in revenue year over year and to gather a customer list that includes Brex, Databricks, Facebook, Instacart, Robinhood, Upwork and Zoom.
The new funding enabled the company to launch its Integrated Development Environment for candidates to interact with relevant assessment experiences like codes, files and a terminal on a machine that is familiar with them, so that they can showcase their skills, while also being able to preview their application. At the same time, employers are able to assign each candidate the same coding task based on the open position.
In addition, Sloyan intends to triple the company’s headcount over the next couple of months and expand into other use cases for skills assessment.
U.S. Department of Labor statistics estimate there is already a global talent labor shortage of 40 million workers, and that number will grow to over 85 million by 2030.