Haystack secures £500k Seed Follow On investment from the North East Venture Fund (NEVF)
A company which aims to revolutionise technology recruitment has raised £500,000 from the North East Venture Fund (NEVF), supported by the European Regional Development Fund and managed by Mercia, as it seeks to expand into the US market.
Haystack uses an algorithm to match individuals with suitable roles, removing the need for recruitment agencies. The platform enables developers, data engineers and other tech professionals to view job opportunities in confidence and find out more about the companies, or simply assess the state of the jobs market. Candidates can choose to withhold their details or alternatively create a profile for employers to view.
Based in Newcastle, Haystack was launched in 2020 during the pandemic by former recruiter Chris Bone and software developers Mike Davies and Rob Simmons to help tech workers make more informed career decisions.
Annual recurring revenue has increased five-fold over the past year. The platform now has over 130 customers including Experian, Skyscanner and Lloyds Banking Group, which pay to put their profile and jobs online, and over 30,000 registered users, with the figure growing by around 2,000 a month.
Haystack has previously received backing fromDan Smyth, former managing director of Bede Gaming, and the government’s Future Fund. The latest investment – which brings the total raised by the company so far to £1.5m – will enable it to further enhance the platform and create a dedicated site for the US in response to demands from clients.
The company, which currently employs 18 staff, is also planning to create at least seven new roles in the next six months.
Chris Bone, CEO, said: “Remote working means developers are no longer limited to one location. Haystack offers a ‘safe space’ where our community can research the different opportunities without being bombarded by calls from recruiters. Feedback from our multinational clients shows there is an opportunity to offer the same service in other countries. This new investment will enable us to target the US initially with a view to moving into Europe at a later stage.”
Ian Wilson, Fund Principal at Mercia, said: “The Haystack team have created a genuine alternative to recruitment agencies – one that offers a better experience for job seekers and allows employers to target a broader range of candidates while reducing costs. The funding will help the company to embark on international expansion and take the business to the next level.”
Lee Humble of Tait Walker, who provided corporate finance advice to Mercia on the deal, said: “We are delighted to have supported the team with this capital raise. Haystack benefits from a fantastic team and a superb business plan which will see impressive growth across a global customer base in the coming years. This funding will propel the business on their journey and I look forward to watching the team flourish.”
ENDS
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About Melius
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Connected Capital’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£800million of assets under management and, since its IPO in December 2014, has invested over £96million into its direct investment portfolio. Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
About The North East Fund
The North East Fund is a suite five venture capital and loan funds which was established in April 2018, to invest £120m in around 600 North East businesses in the period to March 2023. The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs. The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA regulated fund managers. Details of these, and up to date information on the progress of the programme, is available on The North East Fund’s website: www.northeastfund.org
The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds. It is jointly owned by the seven North East local authorities
About the European Regional Development Fund
The North East Fund will receive up to £58,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Ministry for Housing, Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
About the European Investment Bank
The European Investment Bank (EIB) will lend up to £60,000,000 to the North East Fund programme. The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals. For more information, visit: http://www.eib.org/about/index.ht
