Apr 12, 2018

Background check startup raises $100 million

Checkr, a San Francisco-based provider of automated background checks for employers, raised $100 million in new funding led by T. Rowe Price.

Why it matters: Because Checkr's software is designed, in part, to open employment opportunities to the millions of Americans with criminal records.

For example: You run screens on everyone who applies for a non-driving job, and preemptively eliminate everyone with criminal histories. Checkr then might inform you that the qualified applicant pool would grow by 5% if you allowed those with DUI convictions (or perhaps only those w/ DUI convictions from more than 5 years ago). It's not something a client must avail themselves of, but it could be valuable for both ex-cons (who struggle to find work, thus raising recidivism rates) and for employers (particularly in a red-hot labor market).

Bottom line: Checkr originally launched to work with on-demand employers who needed quick turnaround times, but claims to have since begun making inroads into the Fortune 1000. It currently runs around 1 million monthly background checks.

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