Security and screening startup Yardstik Inc. has left stealth mode and is staffing up, it announced Monday.
Minnetonka-based Yardstik provides employee screening and training platform for other software companies and marketplaces. It was co-founded and is run by Matt Meents, co-founder and former CEO of consulting firm Magnet360.
The startup has been in stealth mode since 2019. Yardstik raised a $4 million seed round in April 2020 co-led by Minneapolis-based Rally Ventures and San Francisco-based Crosslink Capital. Rally Ventures partners Jeff Hinck and Justin Kaufenberg have joined the board of Yardstik, as has Crosslink partner Eric Chin.
Rally Ventures has played an integral part in Yardstik's growth and it still sometimes uses its offices.
In his previous role at Magnet360, Meents worked with someone else's product, so the opportunity to take part in building one excited him. However, he took some lessons from Magnet360, including taking a white-labeled, consultative approach where other security platforms have a more one-size-fits-all stance. Customers save an average of 25% compared to other platforms, according to Yardstik.
"Overall, there's an opportunity to disrupt," Meents said.
The firm has 21 employees and has contracted annual recurring revenue (a financial measure often used by tech firms with subscription models) of over $3 million. It's actively hiring and will look for office space in the second half of 2021.
Yardstik already has 33 customers, including local startups like Bloomington-based logistics tech company Dispatch.
“The Yardstik team went beyond basic background screening and listened to the unique needs of our company. They were consultative in their approach and were an extension of our team to help us deliver more for our customers," Dispatch CEO Andrew Leone said in a statement.
Yardstik will raise its next round of venture capital in 2021's second quarter. The size of that round hasn't yet been determined, Meents said.
