Background checks, credentialing and compliance software company KarmaCheck Inc. today announced that it has raised $45 million in new funding to accelerate the development of its technology platform and expand into new industry segments.

Founded in 2019 by Eric Ly, one of the co-founders of LinkedIn, KarmaCheck pitches its offering as reimagining background checks and credentialing by combining the industry’s best technology with exceptional customer support. It does so through a unified platform that integrates thousands of sources for checks to accelerate the screening process.

KarmaCheck claims to provide fast turnaround times and more efficient checks that give companies using the service a competitive edge. The platform uses artificial intelligence and digitized handling for screening and verification to provide fast turnaround times and more efficient checks that reduce the risk of companies hiring the wrong talent and potential claims from negligent hiring, the company says.

“Background checks and credentialing have long been among the most frustrating steps of the hiring process for both candidates and hiring managers,” said Chief Executive Ly. “But that doesn’t have to be the case.”

Ly added that KarmaCheck “focuses heavily on both technology innovation and expert-led customer service. This combination, coupled with our AI-forward approach, is unique in the industry and enables us to deliver not only fast and accurate results but also the industry’s best candidate experience.”

The company says its service has seen strong growth, particularly in highly credentialed industries such as healthcare, where speed-to-hire is a significant competitive advantage. Notable KarmaCheck customers include McDonald’s Corp., MedPro Healthcare Staffing LLC, PRN Healthcare LLC, Receuiter.com Group Inc., Domino’s Pizza Inc. and Lead Heath Inc.

Parameter Ventures LP led the Series B round, with NextView Ventures Management LLC, PruVen Manangement Company LLC and Velvet Sea Ventures LLC also participating. Including the new funding, KarmaCheck has raised about $60 million to date, according to data from PitchBook.

Photo: KarmaCheck/Facebook