Friends, it’s with great pride today that we announce our exit from Stealth with AllyO’s Series A investment led by Bain Capital Ventures, bringing our capital raised to $14M. Cervin Ventures, Gradient Ventures (Google’s AI fund), and Randstad Innovation Fund also participated in the round.
After several years of working at talent-centric companies like Google and McKinsey & Co., we got together in 2015 with the desire to simplify the recruiting experience and make it more efficient. Our initial idea was to run a technology-enabled recruiting agency. With the goal of finding talent for our 15 initial customers, we spent several months visiting career fairs and malls to test our ideas and get user feedback. We learnt three things: (1) the two of us work really well together; (2) human backed conversations are capped at 150 applicants per human per week; and (3) automated conversations not only increased our throughput capacity but also increased applicant response by 300 percent. Armed with these insights, we started AllyO and launched our flagship AI recruiter, Ally.
Ally is an AI recruiter that utilizes natural language processing and machine learning to automate and self-optimize the end-to-end recruiting workflow. Ally addresses the traditional inefficiencies of lost applicants due to poor candidate experience, and high cost of recruiting due to overburdening of hiring teams with administrative tasks.
Today, less than 15 percent of applicants rate their recruiting experience as positive, and recruiters unfortunately spend more than 80 percent of their time on low value tasks such as manually screening a large pool of unqualified applicants or exchanging messages back and forth to schedule interviews. Ally is using AI to solve this important problem. Its mission is to re-humanize the job search experience for job-seekers, and help employers find qualified talent while improving their recruiting productivity.
Ally delivers superior candidate experience through natural conversations, automates the end-to-end recruiting workflow, and provides intelligence to better screen the applicants and improve the recruiting performance.
In the last two years, some of the largest enterprises in the world have hired Ally to solve their hardest recruiting challenges. Ally has already delivered significant, measurable and immediate results for these enterprise customers. For example:
-200 percent to 600 percent increase in applicant capture through sources such as careers page, job boards, social media, referrals, and offline platforms like career fairs
-91 percent conversation completion rate with Ally of which 90 percent is within the first hour
-Instant progression in the recruiting workflow – ranging from screening, scheduling an interview, extending an offer, or routing to other matching jobs
-Productivity savings of 2 days per week for recruiters and 6 hours per week for hiring managers
-Engaging and on-demand text, audio and video assessments of behavioral, cognitive and role related skills
-Intelligence to self-optimize the recruiting performance and help employers with applicant sourcing and talent management strategies
The new financing round will allow AllyO to continue expand Ally’s AI capabilities. It will be used to further enhance the candidate and hiring team experience, strengthen the recruiting automation workflow, and deepen the underlying artificial intelligence. To do this, AllyO plans to more than double its headcount across both business and product teams within 2018 and open its second office.
We plan to leverage the tremendous resources that our investors bring to the table – Gradient Ventures (Google’s AI fund) for technology, Randstad Innovation Fund for staffing industry insights, Bain Capital Ventures and Cervin Ventures for advice on scaling HR tech startups.
“Gradient’s mission is to identify and nurture the most promising AI-first companies. Ally’s conversational AI is truly making the modern recruiter more productive by automating administrative tasks like scheduling interviews, and screening candidates, and keeping them engaged. We’re excited about AllyO’s potential to bring their proven and highly scalable technology to a broader market.”
– Anna Patterson, Managing Partner at Gradient Ventures (Google’s AI fund)
We want to thank everyone associated with our journey and express our gratitude for their unwavering support and guidance. Our customers, team members and their families, and investors have given us the right resources at the right time to establish a strong foundation for AllyO to continue to be one of the fastest growing HR Tech startups.
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