Recruitsoft Completes US$25.5 Million Financing
San Francisco, CA – January 30, 2001 –
Recruitsoft, the leading provider of Web-based hiring management systems for Global 1000 corporations, announced today it has completed a US$25.5 million third round of private financing with a group of investors led by Bain Capital Ventures. General Catalyst, Telesystem Ltd. and an investment partnership comprised of employees of Bain & Company also became new investors in this round, while Telesystem Software Ventures Limited Partnership (Telsoft) and Communicade, the investment arm of Omnicom, added to their existing stakes in this private preferred stock financing. Merrill Lynch acted as advisor to Recruitsoft in this transaction.
Proceeds from the funding will be used as working capital to accelerate sales and marketing activities for the company’s next-generation hiring management system solution, Recruiter WebTop™, which integrates the entire corporate recruiting supply-chain, from sourcing to retention. The power and value of the Recruiter WebTop application stem from its ability to electronically automate the identification of qualified job applicants through a skills-based pre-screening engine, regardless of the number or form of candidate profile submissions. As a result, Recruiter WebTop accelerates the time-to-hire process by allowing recruiters to move more quickly to the value-added tasks of interviewing and hiring. Recruitsoft’s skills-based platform and recruiting supply-chain integration together create a seamless recruiting solution that leads not only to faster time-to-hire, but also faster time-to-contribution, lower cost-per-hire and ultimately, increased quality of hires. In turn, this leads to increases in retention, decreases in bad hires and significantly higher levels of productivity, all of which provide Global 1000 companies with significant competitive advantage and bottom-line savings.
"We are pleased to benefit from the support and resources of such experienced and well respected investors as Bain Capital, General Catalyst and Telesystem Ltd. as we continue to develop and expand our sales and marketing functions," said Louis Tetu, Recruitsoft Chairman and CEO. "The continuing support from Telsoft and Omnicom further testifies to the strength of our solution compared to competing offerings. This is an exciting time for Recruitsoft as we consolidate our leadership position in the human capital management arena, and we look forward to working with these partners to achieve our vision for continued growth."
"As enterprises increasingly leverage the Internet to manage their all-important human capital, they will continue to turn to innovators such as Recruitsoft to facilitate that process and reengineer the human resources component. We were very impressed with Recruitsoft’s vision and quality execution and believe the company plays a leadership role in providing these benefits to Global 1000 firms," said Jeffrey Schwartz, Managing Director, Bain Capital Ventures. Concurrent with this financing, Mr. Schwartz and John Simon of General Catalyst join the Board of Directors of Recruitsoft.
"Telsoft is delighted about adding Bain Capital, General Catalyst and Telesystem as investors in the company. This financing will enable Recruitsoft to continue to capitalize on the tremendous position it has in leveraging the Internet for human capital management to provide significant financial and operational benefits for large corporations," said Robert Talbot, President, Telsoft Ventures LLP.
Merrill Lynch analysts Michael Moe and Chandy Smith predict spending in online recruiting and deployment to increase from US$2.37 billion in 1998 to US$22 billion in 2003, and total global online human capital management spending to increase from US$2.71 billion in 1998 to US$28 billion in 2003.
About Bain Capital Ventures
Bain Capital Ventures is the venture-investing group within Bain Capital (www.baincapital.com). Bain Capital is a global asset management company that manages several pools of capital including private equity, venture capital, high-yield assets, mezzanine capital and public equity with over US$12 billion in assets under management. Since its inception in 1984, the firm has made private equity investments and add-ons in over 225 companies in a variety of industries, including technology and communications, healthcare, consumer goods and industrial products. Bain Capital partners with exceptional management teams in order to build long-term value in its portfolio companies. Headquartered in Boston, Bain Capital has offices in New York, San Francisco and London.
About Telesystem
Telesystem Ltd. (www.telesystem.ca) is a private equity company focused on growth-oriented enterprises offering high-return potential in the Digital Economy. Telesystem includes both a network of operating companies in wireless and broadband communication infrastructures and synergistic enterprises, principally in the development of mobile Internet services and Web-centric business solutions, through its specialized venture capital funds or direct investments. Active on a global scale, Telesystem is recognized for its ability to identify and realize value.
Telesystem Software Ventures Limited Partnership (Telsoft) is one of Canada's largest private venture-capital funds dedicated to the IT industry. Telsoft invests in private companies differentiated by strong management and innovative solutions for penetrating growing international markets. Telsoft was founded in 1995 by Telesystem Ltd and DMR Consulting Group Inc., a leading international provider of information technology services. Telsoft also benefits from the financial support of 11 pension funds, financial institutions and corporations.
About General Catalyst
Headquartered in Boston, Massachusetts, General Catalyst is an early-stage private equity firm. General Catalyst invests in exceptional entrepreneurs building software, communications, commerce-enabling, and Internet infrastructure companies. Led by a team of experienced entrepreneurs, General Catalyst offers powerful operational and business building skills to its portfolio companies. For more information, visit www.generalcatalyst.com.
About Communicade
Omnicom Group's Communicade division (www.omnicomgroup.com) owns and manages investments in a group of market leaders involved in helping clients build their businesses in the digital economy. Communicade also provides assistance to other Omnicom Group units in the development of their digital strategies. Established in 1996, Communicade is now a key strategic component of Omnicom Group's professional services portfolio and a long-term shareholder value building block. By bringing the global resources and stability of Omnicom Group to its investments, Communicade has become the strategic and financial partner of choice for many of the innovators in this space.
About Recruitsoft
Recruitsoft delivers the most complete online recruiting solutions for leading companies across many industries. Recruitsoft clients include Hewlett-Packard, Dow Chemical (NYSE: DOW), MetLife, Hasbro, Deloitte & Touche, Bombardier Aerospace and Transportation, Cabletron Systems (NYSE: CS) and Sutter Health. Recruitsoft is considered the best-practice ASP for recruitment management solutions, based on its proprietary ACE Recruiting™ process technology, designed in collaboration with large corporations to engineer and streamline the corporate recruiting process. Recruitsoft is the first Hiring Management System (HMS) to integrate all areas of candidate sourcing. Accessible via one-click, these sourcing services include: job postings on the corporate Web site, the company Intranet, job boards, advertising in all print media, and contract-assisted candidate sourcing. Recruitsoft is a contributing member of the HR-XML consortium.
Recruitsoft also maintains iLogos Research, a division which studies and monitors trends in the Internet recruiting industry. iLogos Research periodically publishes reports and indices and is dedicated to understanding the needs of large corporations seeking qualified talent.
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