Alva Labs, a Swedish digital hiring tool, has raised $13.3 million in Series A funding. VNV Global led the round.
LONDON & STOCKHOLM – Alva Labs (www.alvalabs.io), the Swedish digital hiring tool that helps recruiters qualify and compare job candidates using data-driven candidate assessments, has raised a €11.7 million ($13.3 million) Series A round.
The round was led by VNV Global (backers of Babylon Health, BlaBlaCar and Voi), with Tomas Lindén (Global Head of HR at H&M and ex-CHRO at EQT Partners) and other leading investors participating.
Founded in 2017, Alva Labs streamlines the hiring process for both recruiters and applicants by providing data-driven candidate assessments that accurately predict a candidate’s job success and suitability. With British firms currently hiring at the fastest rate since 2013, Alva Labs’ solution to the systemic problems facing companies and candidates is particularly timely and relevant.
In 2021 Alva Labs tripled its employee headcount (expanding the team from 20 to 60 employees), increased its candidate pool by 3.5x, and grew its international customer base by 2.5x. The company counts the likes of Deloitte, Northvolt, Voi and Daniel Wellington among its clients.
The money raised will be used to fuel Alva Labs’ international expansion, with particular emphasis on building a world-class UK-based team, product development and modernising the British recruitment sector.
Alva Labs CEO and Co-founder Malcolm Burenstam Linder comments: “Recruiters are constantly faced with the impossible challenge of knowing what to look for in a job applicant. When individual notions of what is ‘good’ or ‘employable’ about a candidate are applied, the process can fill with unconscious bias and prejudice. Alva Labs provides a solution to this by ensuring objectivity for both recruiters and candidates. This means the right people get the right jobs, which is particularly relevant right now, as the Great Resignation is causing a mass exodus of employees worldwide. We’re delighted to welcome our new investors, who will play a vital role in helping Alva Labs expand into the UK job market, so that we can make it a more diverse and bias-free place.”
Per Brilioth, CEO at VNV Global, comments: “At its very core, Alva Labs believes in a bias-free, fair job market for all. The company is transforming the way that businesses recruit their employees, streamlining and improving processes while simultaneously boosting employee retention. We have been continuously impressed by their growth and vision to date, and with such a talented leadership team at the helm, we look forward to seeing their global expansion, and being part of that exciting journey”.
How It Works
According to accountancy firm Accounts and Legal, the average employee costs UK SMEs £12,000 to replace. For businesses to thrive – particularly in the post-pandemic economy – it’s crucial that they hire and retain the best employees.
Alva Labs’ tests, created by its team of psychometricians, data scientists and talent acquisition experts, combine AI and machine learning with leading psychometrics and organisational psychology. With Alva Labs’ data-driven testing across logic and personality, recruiters can save time, money and resources, while also increasing their chances of finding the right person for the right job. The bias-free tool also ensures objectivity, promoting equality in the screening process and increasing diversity in candidates.
On average, companies that use Alva Labs assessments are able to whittle down candidate pools to the 10% most relevant and suitable applicants, without having to look at a single CV. Alva Labs’ assessments are also more than twice as accurate in predicting job performance than when only screening CVs.
About Alva Labs
Alva Labs was founded in 2017 by Malcolm Burenstam Linder and Björn Ström. The company – which is headquartered in Stockholm, Sweden, and employs a team of 60 people – is a digital hiring tool for qualifying and comparing job candidates using data and science-driven data-driven candidate assessments. Alva Labs has raised $19.1M (€16.9M) in investment to date.
About VNV Global
VNV Global, formerly Vostok New Ventures, is a Stockholm-headquartered investment company investing in high-growth, tech-enabled businesses with strong network effects operating in the field of mobility, marketplaces and digital health sectors.