Meet The Harvard Grads Whose Startup Just Raised $30 Million To Help Employers Verify Sensitive Data
While human resource specialists are often spearheading gratifying operations like recruiting new talent, managing training, or organizing team building activities, one of the more mundane assignments is providing income and employment information to lenders or landlords who ask to verify a certain employee.
In 2017, after chatting with human resource specialists and learning that many of these processes were done manually through faxes or phone calls, ex-Harvard roommates Ryan Sandler and Ethan Winchell teamed up with Sandler’s colleague from working at LinkedIn, Victor Kabdebon, with an idea to take on the industry.
The three of them decided to quit their jobs and started Truework, an HR tool that plugs into an employer’s HR system and automatically responds to lenders, landlords, and others who need to verify employment.
In mid-May of this year, Truework announced it had completed a $30 million Series B funding round, led by Activant Capital with participation from returning investors Sequoia Capital and Khosla Ventures. Individual investors include ex-LinkedIn CEO Jeff Weiner, DocuSign founder Tom Gonser, and Forbes 30 Under 30 honorees William Hockey (cofounder of Plaid), and Daniel Yanisse (cofounder of Checkr).
“At the end of the day, the problem was that when a consumer applied for a new loan, or got a new job or a new apartment, it used to take days or weeks for them to get approved because it took so long to verify the information,” says Ryan Sandler, who serves as Truework’s CEO, and who along with COO Ethan Winchell made it to the 30 Under 30 list last year.
The platform works in a way that once a company’s human resources department adds Truework to their HR and payroll system, any time an employee goes out to get a loan or other transaction that third party, that bank or the lender is routed to Truework where they make a request for the employees information.
At that point the employee gets an email or a text message to see and approve the release of the data to the bank or lender, before Truework releases it.
In the 2017 industry was shattered by the major 2017 Equifax data breach when personal information of almost 147 million people was exposed, for which Equifax has agreed to pay at least $575 million and potentially up to $700 million in settlement with federal and other authorities.
According to Sandler, the biggest difference in Truework and the competition is the consent aspect of his platform. With Truework, employees can make sure that not only they want to release that information to the lenders or landlords, but also that it’s accurate, in addition taking the burden of sending that information off the shoulders of HR specialists.
“Employers can sit back and not have to waste precious hours doing paper forms, and at the same time, give their employees full control and transparency of their data,” Sadler says.
Truework’s client network includes nearly 100 large companies and 20,000 small businesses across various industries, including The College Board, Oscar Health, and The Motley Fool.
The San Francisco-based company previously closed a $12 million Series A round in 2019, and $3 million in seed the year before. With the latest $30 million equity financing, the total amount the 50-employee enterprise has raised amounts to $45 million.