- Dan Finnigan
- ATA Fund III
- ATA Involvement:
- Board: Hatch Graham/Source: Michael Hodges
Jobvite creates Software–as–a–Service applications that improve recruiting productivity and quality for any company while lowering recruiting costs. Easy to use, social recruiting products from Jobvite get everyone involved to find and hire the right talent. Jobvite’s proprietary recruiting technologies make recruiting in social networks and on the open Web effective and easy.
In 2009, the economic hardships within the startup industry were historic. JobVite was not excluded, and although the company had logged several consecutive months of record revenue, CEO Dan Finnigan was entering an extremely difficult fund-raising environment. Dan joined JobVite the prior year and successfully steered the company into a key emerging segment of the $165B human resource recruiting market.
By summer of 2009, based on its social recruiting delivery platform, JobVite landed over 50 clients, including an impressive variety of companies. ATA’s Mike Hodges was introduced to the company and quickly saw the value. Along with his ATA partner, Hatch Graham, the pair conducted an evaluation of the opportunity, successfully resulting in ATA’s offer to lead JobVite’s Series B round.
JobVite’s innovative use of social networks to address a costly area of employee recruiting gathered strong industry recognition, including selection as a TiE50 Top 10 “Hottest Software Startups” and Gardner’s award for “Cool Vendor” in Human Capital Management. By the end of 2010, the company had several hundred clients and more than tripled annual revenue, but was now faced with the strategic decision whether to pursue positive cash flow or increase investments to accelerate product introduction and client growth.
“Knowing that Hatch had managed successful growth businesses in the past, I leveraged his experience and business judgment to assist me in the evaluation of the alternatives, including the risky proposition of raising capital in a sluggish market.” Dan Finnigan, CEO
The result of the efforts confirmed JobVite’s powerful opportunity to accelerate the growth of the business, and together, Dan and ATA’s partners worked closely in the process of the Series C fund-raising, including the selection of prospective investors, as well as crafting a communication message appropriately illustrating JobVite’s prospects.
“The preparation and process of entering the fund-raising environment cannot be taken lightly. Hatch’s unique perspective encouraged us to see ourselves as far more valuable than financial metrics alone.” Dan Finnigan
The result of the teamwork attracted multiple investment offers at increased valuations, and the 2011 Series C equity round was a success. Within 12 months from the completion of the round, JobVite’s business grew to over 1,000 clients, ranging from internet based contemporaries Twitter, Groupon, Zoosk, and Zynga to legacy market leaders General Electric, Starbucks, and Addidas.