Recruiting technology startup Grayscale Labs Inc. raised $3.3 million led by Atlanta Ventures to double its team.
Inside the deal: This round is Grayscale’s first institutional raise, CEO Ty Abernethy said. The Atlanta Tech Village startup wanted to work with Atlanta Ventures because of its expertise in business-to-business software companies. The early-stage investment firm is also based in the Atlanta Tech Village and has investments in big names in the Atlanta innovation ecosystem, including scheduling software startup Calendly, marketing tech startups SalesLoft and Terminus.
About the company: Grayscale, founded in 2018 by Atlanta native Abernethy and chief technology officer Hubert Liu, automates the recruiting process for companies that hire in high volumes, such as warehousing, healthcare or high-growth tech companies. Its roughly 200 customers include online furniture store Wayfair, Amazon Pharmacy and workout streaming startup Peloton. Grayscale uses automated text messages to help recruiters manage candidates, which makes the process more efficient and personal, Abernethy said. It has seen a 425% year-over-year revenue growth, he said.
What’s next: Grayscale plans to double its 12-person team, hiring in customer success, sales and engineering, according to its website. The startup will also continue product development, including adding new integrations into workplace software.
Why it matters: The Grayscale funding shows Atlanta’s generational expertise in business-to-business software, which is concentrated in the Atlanta Tech Village. Grayscale also demonstrates a growing trend of companies using SMS text messaging to make communication easier. The use of text messages allows candidates to more easily interact with the recruiter, especially if they’re not constantly around their computer or checking email, Abernethy said. Atlanta startups ParrotMob and Voxie use text messaging to drive sales and customer interactions for companies.
What they’re saying: “We make it easy to engage candidates via SMS,” Abernethy said. “The power of Grayscale is being able to automate the touchpoints of the candidate journey.”
