Vetty announced a $4 million “pre-A” round (so, that’s a seed round?) for its AI-empowered background screening tech. Background checks and employee data verification has come a long way over the last 10 years or so, but it’s still a process that requires a surprising amount of manual effort to get it right and ensure fairness and accuracy. This is largely due to the source information still not being hosted in databases, or in databases that are accessible. That gap is closing, but in the interim, employers need to be certain that the background check provider they choose is filling it with an effort made by humans. Vetty stresses its AI in its messaging, but no mention of that effort to fill the data gap. That’s not to say that they do, or don’t do, this. It’s just the first question that screams off the webpage.
Most startups in the category lean into the tech when it comes to messaging. There’s no surprise here. Investors aren’t crazy about solutions that require a network of humans looking at paper to ensure a complete and fair background check, but it’s what’s required until the real world catches up with the aspirations of HR tech innovators in this category. Especially for employers concerned with having a fair and inclusive hiring process.
Source: Press Release: 3Lines Leads $4M Pre-Series A Investment Round in Vetty