Greylock Puts $5M in BountyJobs

BountyJobs, the online marketplace that introduces corporate recruiters with headhunters, has closed a new round of financing for $5 million, which was led by Greylock Partners. Joining Greylock in the round was Accel Partners and Michigan-based RPM Ventures.

PRESS RELEASE:

Greylock Leads $5m Expansion Round for BountyJobs
Faith in the Future of a Streamlined Headhunter Market
NEW YORK – September 7, 2011 – BountyJobs, the online marketplace that connects corporate recruiters with a national network of seasoned headhunters, today announced it has closed its latest round of financing –$5 million from existing investors led by Greylock Partners.
The new funding will help BountyJobs expand software and services support for existing and future clients that regularly hire through contingent search agencies, according to CEO Mike Hard. In August, BountyJobs was one of only seven HR industry companies to be named to the 2011 Inc. 500, an exclusive ranking of the country’s fastest growing private companies.
Today, BountyJobs boasts a marketplace of more than 10,000 approved headhunters nationwide that are filling jobs for thousands of employers – including more than one-third of the Fortune 500. Once approved to join the free marketplace, employers post job descriptions along with the fees they are willing to pay for successful hires. Specialized headhunters request permission to work on each job and employers, after reviewing headhunters’ historical performance on BountyJobs, engage a handful of agencies who compete to supply the most qualified talent. Companies that use the BountyJobs marketplace report finding higher quality agencies more quickly, while at the same time cutting administrative hassles such as cold calls, contract negotiations and billing issues.
The new series of funding was led by Greylock Partners, with the London offices of Accel Partners and Michigan-based RPM Ventures also increasing their investment.
“Despite fragmentation and inefficiency in the contingent search market, companies still spend billions of dollars each year on headhunters in the US”, said Dave Strohm, Partner at Greylock Partners. “By giving companies a free, streamlined way to find and hire candidates through specialized headhunters, BountyJobs is transforming a major sector of the recruiting market”.
“BountyJobs was founded on two beliefs,” said CEO Mike Hard, “a belief in the power of headhunters to fill critical roles, and a belief in the power of an online marketplace with centralized administration to take the hassles out of managing jobs sent to the headhunting channel”.
Founded in 1965, Greylock currently has more than $2 billion in committed capital. It has helped build hundreds of companies, leading to more than 100 successful public offerings and more than 100 successful mergers. Greylock’s portfolio has included LinkedIn, Groupon and Zipcar.
The venture development team at Accel Partners provides entrepreneurs with experience, insight and guidance to build strong businesses that will stand the test of time.
RMP Ventures was founded in 2000 and is an early-stage venture capital firm. One of its two investment focuses is on startups based on technology developed at one of the Midwest’s premier research centers. Its initial investment in BountyJobs was in August 2006.