Canvas, formerly known as Jumpstart, announced a $20 million Series B round of venture capital for its diversity recruiting app. This brings its total raised to $32.7 million.
Canvas is positioning itself as a “diversity recruiting platform” but presents itself as more of a sourcing and branding app. As they move in this direction, they join a competitive field of providers like WayUp, Kanarys, HiredScore, SeekOut, PandoLogic, and a rapidly growing list of others helping employers find and hire more diverse candidates. Providers that give employers more access to diverse candidates and can mitigate any bias out of the sourcing and selection process have all seen increased sales in 2020. Employers are looking for more sources of diverse talent and are shifting some of their ad/sourcing spend to platforms that help. On the platform front, there are fewer providers. Greenhouse has made the most significant investment into embedding inclusivity throughout the hiring process via its product “Inclusion,” developed in partnership with Paradigm. However, all recruiting platforms are investing in this area, and we expect to see more product releases and acquisitions on this front.
VC investment is increasing in diversity work tech, however not at the rate that we would expect to see given the importance of the issue and market opportunity.
$2.7 billion was invested globally in work tech during 2021 Q1 alone. Get WorkTech’s free report and analysis here.