The Newcastle company has now accessed £1.5 million in finance to support the growth of its tech recruiting platform.
A £500,000 investment will enable a North East IT recruitment firm to enter the US market.
Haystack, a company located in Gosforth and situated in Newcastle, has secured £500,000 from the Mercia-managed North East Venture Fund (NEVF), which the European Regional Development Fund funds. In order to assist computer employees in making better career selections, Chris Bone, a former recruiter, and the software engineers Mike Davies and Rob Simmons founded Haystack in 2020 during the pandemic.
By employing an algorithm to connect people with relevant opportunities, the firm eliminates the need for recruiting agencies and helps more businesses and tech employees hire wisely and discover their perfect roles. Developers, data engineers, and other technical workers may use the site to explore job openings with confidence, learn more about the company, or just analyse the health of the labour market. Candidates have the option of withholding some information or, alternatively, building a profile that employers may access.
The business, which won the North East Newcomer of the Year award in 2021, obtained more than £1 million in initial money a year ago to build up its platform.
The firm now has more than 130 clients, including Experian, Skyscanner, and Lloyds Banking Group, who pay to have their profiles and positions posted online, and more than 30,000 registered users, with the number increasing by about 2,000 each month.
Dan Smyth, a former managing director of Bede Gaming, and the government’s Future Fund have both backed Haystack in the past. The most recent investment, which increases the company’s total funding to £1.5m, will allow it to improve the platform further and build a specific site for the US in response to customer requests.
The firm, which presently has 18 employees, also intends to add at least seven more positions within the next six months.
According to CEO Mr Bone, developers are no longer confined to a single area thanks to remote working. Our community may investigate the many possibilities on Haystack without being barraged by calls from recruiters, creating a “safe area.” Feedback from our international clientele demonstrates that there is potential to provide the same service in other nations. With a view to eventually expanding into Europe, this new financing will allow us to focus on the US initially.
The Haystack team has developed a viable alternative to employment agencies, according to Ian Wilson, fund principal at Mercia, one that provides a better experience for job searchers and enables businesses to target more prospects while spending less money. The money will enable the business to expand internationally and advance its operations. We are thrilled to have assisted the team with this capital raise, according to Lee Humble of Tait Walker, who advised Mercia on corporate finance issues regarding the transaction. Haystack has a great staff and a great business concept, and in the upcoming years, it will see significant growth among a large worldwide client base. With this money, the company will go forward, and I can’t wait to see the team succeed.
