Hatch has closed an oversubscribed seed round to scale its AI-powered jobs marketplace aimed at Gen Z.
Hatch, an AI-powered jobs platform founded by The Iconic co-founder Adam Jacobs and Zip co-founder Chaz Heitner in 2017 (but officially launched launched in 2020) has closed an oversubscribed $7 million seed round to scaled its jobs marketplace.
The funding round was led by Rampersand, with contributions from Investible, Alberts Impact Ventures, Aura Ventures and Jelix Ventures, and existing private investors including Ahmed Fahour.
Hatch, which says it goes beyond the traditional CV, to take skills, values and motivations into account when matching candidates with potential workplaces, is targeted at Gen Z professionals, who today make up about 25% of the workforce. According to Deloitte research, nearly half of them have rejected job offers from organisations that don’t match their values.
And according to Hatch, the approach is working: candidates are reportedly three times more likely to be interviewed when applying for a job via its platform when compared to the industry average.
The company claims it has grown 20% month-on-month for the past two years, gaining market share in the $28 billion Gen Y/Z hiring market. It also says more than 150,000 candidates and 120 Australian companies (including Woolworths, Uber, Qantas and Domain) are using Hatch, with more than 150,000 applications submitted via the platform.
“There’s this idea that AI is here to take jobs from the next generation, but in fact it’s here to
help people discover them,” Jacobs said.
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“AI is re-shaping the lives of Gen Z in the way they discover content, create content, get financial advice and how they navigate dating. We’re delivering an experience where AI is helping people from all backgrounds find work that’s the best fit for them, but one that always keeps the humans in the centre and in control. Ultimately that’s what hiring is about – people connecting with people,.”
The new funding will be used to fuel Hatch’s growth nationwide and to invest in technology and a candidate-centric user experience. It also plans to onboard more employers and candidates, and actively grow its team.
Rampersand’s Investment Principal, Taryn Pieterse, said the Hatch co-founders were driven to reinvent how people find work.
“Hatch is a great example of AI being used to deliver a materially better experience. For a number of years we’ve been the choice seed fund for ambitious AI and marketplace startups,” Pieterse said.
“When we met Hatch founders Adam and Chaz, we immediately recognised their successful track record, potential and ambition to bring new solutions to the changing world of work,” Pieterse said.”
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