Hunting for a job has become increasingly digital yet has not become more organized. As more and more people use the Web to almost spam out their resume, it is difficult for even the highest qualified to be noticed among the many other applicants, and it can be just as difficult for a hiring manager to pick out the true top talents of the group.
VC investment in the U.S. human capital services industry has been on the rise since 2009 (maybe only coincidentally, the height of the U.S. unemployment crisis). Since then, when only 13 deals brought in $34 million in venture capital, the number of deals has steadily climbed while capital invested has risen to new recent highs. 2013 saw 34 deals infuse the industry with $142 million, providing companies the capital needed to develop technologies bringing everything—from application portals and resume builders to video interviewing and automated ranking systems sifting through applications—all into one platform. 2014 is off to a relatively similar start as last year, with over $55 million invested, including the recent $7 million investment in Jobaline.com (details below).
Efficiency is the name of the game in the hiring process. Filling open positions with high quality talent is important to an employer, just as gaining employment quickly is important to a person in-between jobs. As the number of people using online services to hunt and apply for jobs rises, it makes sense for investment to follow.