HeadRace raises $6 million in seed funding from Greylock and others

  • Marketplace startup HeadRace helps connect recruiters with employers looking to hire.
  • Despite broader tech layoffs, hiring has accelerated for early-stage startups, HeadRace’s CEO said.
  • The startup has raised $6 million in funding from Greylock, Susa Ventures and Breyer Capital.

Laszlo Korsos is a bit of an economics geek.

After going through the grueling process of hiring dozens of employees while at Uber and Flexport, Korsos was inspired to change the hiring system. He was also influenced by the lessons he had learned while earning a doctorate in econometrics and statistics at the University of Chicago.

“What always stuck with me as an economics person was that the experience and recruiting economy was really inefficient,” Korsos said. “I always thought there had to be a better way to do it.”

Korsos, along with co-founders Kevin Brinig and Amos Barreto, is bringing a flavor of the free market to the recruiting industry with startup HeadRace, a marketplace that connects recruiters and companies. HeadRace recently raised a $6 million seed round led by Greylock, Susa Ventures and Breyer Capital, with participation from Packy McCormick, Kindergarten Ventures and Blue Lion Global.

Amid widespread tech layoffs and economic uncertainty, it’s a tough time to be recruiting. However, Korsos believes that this environment offers a unique opportunity for HeadRace.

While hiring has slowed at large public companies, it’s actually accelerating at early-stage startups looking to fill a range of specialized roles, Korsos told Insider. On the recruiting front, many recruiters broke away from traditional firms during the recession to start smaller, niche boutiques and are looking for their first clients, he added.

HeadRace connects both sides of this equation, allowing employers to view the placement records of recruiters in its marketplace to identify those with the most relevant experience for specific roles or industries. Companies can also contact multiple recruiters at once if they want to fill multiple roles or ask for referrals.

For recruiters, the startup offers a range of software and services such as accounting, payment processing and invoicing for free, reducing overhead and creating a stickier product.

The recruiting market also includes a number of emerging startups that are trying to tackle inefficiencies from multiple angles. For example, some job marketplaces like Worca connect candidates and employers directly, eliminating recruiters entirely, while others like Moonhub focus more on identifying suitable candidates using AI.

For Korsos, relationships and interpersonal connections are at the heart of the hiring process. Therefore, HeadRace’s aim is to still maintain a human element while focusing on connecting employers with the best specialist recruiters, he explained.

Going forward, the startup plans to use its seed funding to develop its technology offerings and improve scalability, Korsos told Insider.

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