Andreessen Horowitz has led a $15 million Series A in US-primarily based job matching platform for nursing vacancies, Extraordinary Wellness. Other investors in the funding round involve NFX, Clear Ventures, Precursor Ventures and Gingerbread Capital. To date the recruitment startup has raised a total of $17M.
The California startup’s pitch to nursing specialists and hospitals is more quickly and a lot more effective hiring by means of proprietary matching algorithms which replace the want for hospitals to manually sift applications. As an alternative the platform matches job seekers to nursing vacancies primarily based on criteria supplied by each sides of its network.
Why concentrate on nurses? The startup cites a statistical claim that by 2024 the US will have a shortage of a million nurses — which it argues poses a danger of economic loss to hospitals, as contractors price a lot more to employ, although also contending that a expanding quantity of unfilled nursing vacancies dangers the high-quality of care hospitals are capable to provide individuals.
It launched its recruitment platform in late 2017 and has so far restricted its variety to California, with 150+ hospitals in the area signed up and an undefined “thousands” of nurses on board.
The Series A funding will be going towards accelerating national scaling in the US.
As effectively as VC backers, Extraordinary Wellness’s Series A consists of participation from a quantity of person investors hailing from the hiring space — like Hired founder, Matt Mickiewicz Steve Goodman, founder of Vibrant.com (acquired by LinkedIn) and Pete Kazanjy, founder of Talentbin (acquired by Monster) .
“We look at at least 40-50 different criteria, including location preferences, licenses and skills,” says co-founder and CEO Iman Abuzeid who has a background as a health-related medical doctor. Her co-founder and CTO, Rome Portlock, who comes from a household of nurses, is an MIT alum — exactly where he studied pc science.
“We work with each hospital individually to understand their key needs so we can customize their algorithms, enabling personalized matches that don’t waste the recruiter’s time,” Abuzeid adds. “We also discover out the nurse’s preferences by means of automated solutions.
“At the end of the day, a hospital recruiter or hiring executive does not want to see 200 candidates in their app, they want to see 12 that are the right fit. Same with the nurses — they don’t want to hear from 76 employers, they want to hear from three that are the right fit.”
Extraordinary Wellness’s claim for its method is that it yields 3x more quickly recruitment vs the national typical — saying hires by means of its platform take 30 days or significantly less alternatively of up to 90 days on typical.
It also tends to make a additional claim of 25x “hiring efficiency” for hospitals as a consequence of its matching algorithms taking more than significantly of the hiring admin. This is primarily based on information from hospitals which, prior to applying its platform, had to evaluation an typical of 500 applicants to fill a single position vs the matching tech cutting that to an typical of just 20.
Nurses don’t apply to jobs on Extraordinary Wellness’s platform it’s up to hospitals to apply to nursing specialists the algorithm deems a appropriate match for a job vacancy.
Hospitals can’t browse all out there nurses they only see candidates the algorithm selects for them — so, as with nurses, they’re trading wider visibility of the job industry for algorithmic matches primarily based on non-disclosed “proprietary” criteria.
Extraordinary Wellness sells that reduction of agency as an efficiency saving to each sides of its network.
“Rather than completing an application for every potential employer — a process which takes an average of 45 minutes per application — nurses who use Incredible Health complete one profile — a process that takes less than 5 minutes. That profile is then used to screen and custom-match them to multiple great job opportunities,” says Abuzeid, adding when asked about criteria that nurses have to supply “information like their job preferences, knowledge and ability set, and also their education and licensing” as element of the onboarding profile-creating method.
For nurses this load-lightening switch from active jobseeker to passive platform lurker — i.e. after they’ve made their profile — is how Extraordinary Wellness hopes to woo healthcare workers away from regular job boards (such as specialist nursing vacancies board Certainly).
Its promoting hence leans heavily on claims that nurses just want to commit a couple of minutes generating a profile and then watch as the wonderful job presents to roll in.
It also claims nurses who discover employment by means of its two-sided platform score on typical a 17% salary improve and a 15% reduction in commute time.
Although all these figures are derived from an unknown quantity of nurses operating across a subset of hospitals in a single US state — so it remains to be noticed how claimed perks get squeezed as the platform scales its national variety and necessarily opens up to a wider pipeline of nursing specialists.
For now, Extraordinary Wellness also says its concentrate is on creating a profession marketplace for nursing specialists to connect them with “permanent, well-paid hospital jobs”, rather than dealing with travel and temp nurses.
Once more, regardless of whether it’s capable to preserve concentrate on what one particular investor calls “high value health care workers” and the claimed higher high-quality permanent jobs as the organization scales will also be one particular to watch.
Commenting on the Series A, Andreessen Horowitz managing companion Jeff Jordan told us: “Incredible Health’;s mission is to help health care professionals live better lives and do their best work. They’;ve seen strong early success helping to match these health care professionals with hospitals throughout California, and are beginning to expand their solution nationally. We look forward to supporting their efforts to building a game-changing health care employment marketplace.”
Element of the funding will go on expanding from a pure hiring platform — to what the startup bills as a “community for health care professionals as they advance their careers” — in a clear bid to nurture and expand its candidate pool so it can be responsive to platform requirements.
“High caliber nurses are out there, but employers have a hard time hiring them through traditional methods like job boards and recruiting agencies because those methods rely almost exclusively on human engagement — not technology — to scour through applications, licenses and experience — and manually vet and qualify them for jobs,” Abuzeid tells TechCrunch, dubbing the job-board competitors “outdated solutions”.
As effectively as providing a “streamlined” hiring method for nursing roles, as she puts it, she notes the platform automates “entire parts of the screening and vetting process” — which means “we’re able to deliver high-quality nurses at scale”.
That stated, there’s nevertheless manual operate involved — with the startup noting on its web site that employees may possibly speak to nurses to “make sure you’;re presenting yourself in the best way possible to top hospitals”, as effectively as telling hospitals that candidates are pre-screened for “licenses, experience, responsiveness, and more” (although at least some, if not all, of that vetting is automated).
Like any platform startup, Extraordinary Wellness is hoping to channel network effects to its benefit — like by feeding information back in to enhance matching algorithms.
“Our system gets more effective the more who use it,” Abuzeid tells us. “The 1st [effect] is a regular marketplace network impact: Extra nurses has attracted a lot more hospitals, and a lot more hospitals has attracted a lot more nurses. And then, there’s the information network impact: The a lot more each and every side makes use of it, the ‘smarter’ our algorithms get, as well.”
Each and every hospital onboarded onto the platform brings with it a variety of requirements “advancing our system’s performance abilities”, she adds.
Though algorithmic recruitment can clearly speed up the organization of matching candidates to relevant jobs — a aspect evident in the sheer quantity of job matching startups now playing in distinctive sectors — it inevitably entails a loss of handle for each sides of the employer-applicant divide.
Based on matching criteria utilised there could be prospective for gender and/or racial bias to creep into automated selections — bias that would be tough for hospitals to detect considering the fact that they’re only capable to view a subset of candidates deemed a match, rather than the whole out there pool at the time.
Having said that Abuzeid dismisses the thought that there’s any danger of bias in Extraordinary Wellness’s method.
“We operate successfully in a very regulated industry,” she says. “Because potential employees are assessed on their skills, experience and certifications, the technology weeds out biases typically found in processes which are largely human-powered.”
On the organization model front, Extraordinary Wellness is charging hospitals what it bills as a “simple, flat fee pricing regardless of level, experience or location” — which it touts as “cheaper and more scalable than traditional recruiting agencies”.
“Traditional recruiting agencies are very expensive, because they don’t use technology in their screening and matching processes. It’s all people powered and can cost $20,000-$30,000 per single hire,” Abuzeid claims.
As for rival (decrease charge) legacy job boards, she argues they provide “quantity, not high-quality and need lots of operate for nurses and employers to discover a superior match” — claiming this old college system benefits in “really low hiring rates at 0.2%”.