Sprockets announced a $3.4mm venture raise, allowing them to further drive innovation in the hourly workforce and empower their customers to hire applicants that are the precise fit for their needs.
Lytical Ventures of New York City led this round of investment for the SaaS company after they had such a successful year despite the global pandemic. Due to their growth before and during COVID-19, Sprockets showed strong demand from verticals dependent on the hourly workforce with high employee turnover. This raise sets them up for significant expansion within the foodservice, healthcare, and hospitality markets.
AJ Richichi, CEO of Sprockets, shares his thoughts on what this investment means for the company and its mission: “We started Sprockets to make a profound change to a hiring process that is plagued with inefficiencies and bias. This investment changes the scale of that mission, and we were thrilled to find partners that believe in its integrity.”
Sprockets’ software offers a simple solution to a complex hiring problem. The Applicant Matching System evaluates potential hires based on the traits of a company’s best employees to determine if they will be the right fit for the organization. There is no guesswork, frustration, or expense of high turnover. They’ve already helped numerous franchisees of companies like McDonald’s, Chick-fil-a, and HomeWell.
Anya Schiess, General Partner of Healthy Ventures, one of three other investment firms in this round of funding, states some of the reasoning behind their decision: “With a ~10% U.S. unemployment rate, finding entry-level employees isn’t a problem. Identifying which employees will be the best performers within your organization is a problem. Retaining your best employees is a problem. Maintaining a productive culture is a problem.” Sprockets solves these problems.
It’s also rare for a South Carolina-startup company such as Sprockets to receive funding from outside the Southeast region. Richichi knows this is a sign of great things to come, expressing the utmost confidence in his team and excitement for the future. “Fundraising as a South Carolina-based technology company during a global pandemic was not easy, but I couldn’t be more proud of our team. Together, we will be able to share our technology with the world.”
This round of investment included Lytical Ventures, Thayer Ventures, Healthy Ventures, and VentureSouth. Each of these VCs brings years of experience in various industries to connect and expand Sprockets’ reach to verticals dependent on an hourly workforce.
Richichi goes on to say, “We have aspirations to become one of the fastest-growing companies in the Southeast.” Sprockets is certainly on track to fulfill his goal with this raise.