Exclusive: Tampa hiring tech startup raises $3.7M following Great Resignation wave
A Tampa technology company focused on easing the hiring process has raised over $3 million as the Great Resignation continues to leave many employers at a loss.
Chattr exclusively told the Tampa Bay Business Journal Wednesday it closed a $3.7 million seed round led by local entity Florida Funders.
“I’m from Tampa, raised in Tampa and have built several businesses here; we definitely are deliberate about leaning into those local funds first,” said Jim Schimpf, Chattr’s CEO and founder. “And obviously, we wanted to stay more tied into the Tampa Bay ecosystem since it’s growing so quickly.”
Steve MacDonald, myMatrixx founder and current head of MacDonald Ventures, also participated, along with unnamed Southeastern investors.
“Businesses no longer have to accept the pain points in hiring as a cost of doing business,” Tom Wallace, managing partner at Florida Funders, said in a statement. “Chattr proves that time and resources can be reduced as it streamlines the application and hiring process through automation. This is critical in the hourly workforce today, and we’re looking forward to witnessing the continued success of Chattr in the human resources space with the support of our investment.”
Chattr’s software helps companies with initial job postings and reviews and narrows down qualified potential candidates, schedules interviews and handles post-interview duties. Its AI chatbot can also chat with potential applicants, taking them through a series of questions instead of a lengthy application. The funding comes at an inflection point for Chattr, which Schimpf said grew 1,400% from 2020 to 2021, including racking up a deal with Bealls Inc.
This is the first round of institutional funding for Chattr, and Schimpf said he has no immediate plans to raise more funds. However, he acknowledged a Series A could be likely in the next two years.
The latest funding will be used for growth across the board, focused on sales and marketing, product development and growing the support team. The company currently has nine employees, including Schimpf, which he hopes to increase to roughly 30 in the next 12 to 18 months.
“This is a pretty significant round for us in terms of our growth trajectory that we’re modeling,” he said. “Between the market conditions, our current traction and this capital, it’ll allow us to make a significant impact on the problem.”
Schimpf added he does not believe the fallout from the Great Resignation will slow anytime soon, but even if it does, companies will need to use his technology more than ever.
“I think it’ll get worse before it gets better, and even if it does get better, the problem with the hourly workforce turnover has always been 100-plus percent,” he said. “Even if applicants come in droves, the turnover on the back end still exists and has forever. We’re useful in applicant markets and when there’s a lack of them.”
Read more on: https://www.bizjournals.com/tampabay/news/2022/04/13/chattr-hiring-tech-startup-raises-37m.html