Sprockets raises USD3.4m to bring AI to the hourly workforce
Sprockets has announced a USD3.4 million venture raise, allowing the company to further drive innovation in the hourly workforce and empower 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, says: “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 organisation. 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, says: “With a ~10 per cent US unemployment rate, finding entry-level employees isn’t a problem. Identifying which employees will be the best performers within your organisation is a problem. Retaining your best employees is a problem. Maintaining a productive culture is a problem.” Sprockets solves these problems.
“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 adds: “We have aspirations to become one of the fastest-growing companies in the Southeast.”