Understanding the investment opportunity
TalentFY is the most efficient digital recruitment platform that helps companies hire the best IT talent in less than 10 days. It works as a marketplace between employers and headhunters, and assigns, thanks to AI technology, the 3 best headhunters according to the position to be filled.
TalentFY is the first recruiting platform capable of securing candidates in just 10 days. As it is a 100% digital platform, it allows all candidates for the different processes to be tracked. More than 10,000 candidates have already been uploaded on the platform, all of them linked to a single recruiter and all of them with more or less progress in each selection process, so we can track the performance of each freelance recruiter who has uploaded the candidate. Our Artificial Intelligence technology then allows us to score the recruiter according to each type of position and assign the 3 best ones.
This allows us to achieve agility and quality metrics well above the market:
- TalentFY manages to close 75% of the processes in just 1 month from its opening. These processes usually take more than 6 weeks and TalentFY manages to find the ideal candidate and have them start working in just 1 month.
- 25% of the fastest processes (more than 250 already) have been closed with the candidate being hired in 13 working days, when with solutions such as LinkedIn or Infojobs it takes around 20 days to obtain valid candidates for positions that require a high level of seniority.
- TalentFY uploads the first accepted candidate on average on the 2nd day. And it manages to upload the candidate finally hired, on average, on the 7th day.
- 25% of the candidates submitted reach the final stage of the process.
TalentFY is characterised by its operational excellence. The recruiting market is usually driven by success, so it is key to get the Success Rate right. TalentFY successfully completes 2 out of every 3 processes in which it competes against other solutions. We double the market ratio, since out of every 3 opportunities, TalentFY achieves 2 while our competitors only get 1. This success is based on assigning the 3 best recruiters to each vacancy thanks to our AI technology. TalentFY has managed not only to carry out research projects co-financed with European funds, but has also found the key to the application of AI to deliver these good operational results.
Going back to the sense of marketplace between company and recruiter, this in itself is the first differentiation. We are able to vary the operating costs of the fixed structure of a recruiting agency with a much more powerful, technology-based value contribution in finding candidates. And we also achieve a lower dependency on candidates as it is not a marketplace between candidate and company.
The marketplaces between candidate and company, commonly called Job Portals, provide great value when the profile does not have the bargaining power, but it does not work when we are talking about tech profiles. This is due to the fact that only 15% of tech candidates apply to job offers and this leads this type of companies to 3 possible endings: change to the target profile (lower), change business model to a recruiting agency (without technology) or die. And this concept can be categorically affirmed by looking at the history of HR.
The first portal in Spain was Infojobs (IT + Jobs). Although it initially started with technological profiles, it has gradually lowered the type of profile until reaching the very generalist and non-technological profile that it has today. The same happened with JobAndTalent, which is now doing a great job with temporary job profiles. Bandit or JobAndFluent had worse luck... all of them, without exception, are assimilated for having been born as a job portal (company-candidate) and had a great initial success where all candidates updated their profile. After a while, when they were no longer in "hype" mode, the candidates themselves no longer accessed the portal and as a result the company was left with an out-of-date candidate database or the cost of candidate acquisition increased drastically (in addition to the cost of client acquisition).
TalentFY avoids this need to maintain both sides of the marketplace and focuses exclusively on the client-employer. Obviously, our value contribution to recruiters is very good and we have a very high engagement rate, although they come looking for TalentFY, with no acquisition or maintenance costs on our part.
We attract potential new clients through our differentiation of Agility (promise of 10 days for your ideal candidate and the reality exceeds the guarantee, since on average we get the ideal candidate on the 7th day) and repeat clients are loyal thanks to our excellent service (success stories). The satisfaction of filling the vacancy quickly is the best Top Of Mind for repetition.
In addition, TalentFY is proud to share a metric not only for recruiting but also for retaining the talent that our clients hire. While the average turnover in the tech sector is only 18 months, 78% of candidates hired through TalentFY exceed 18 months. This is clearly an improvement and we understand that the best recruiters that TalentFY assigns are able to validate the requirements of the candidates, but also to understand their needs and guarantee that the next project will be a clear improvement for them.
All this allows TalentFY to have a high level of client loyalty. 82% of our clients keep their vacancies with TalentFY.
Soy amable, transparente, generoso y exigente (más conmigo que con el resto). Profesionalmente soy curioso y orientado a resultados
Core Angels Barcelona
Jesús González Martí
Reasons to invest View more data
Winners of awards such as Biz Barcelona, Talent Summit, TOP9 Startups Catalunya...
Repeat rate of over 80%: 82% of TalentFY's clients repeat.
Annual turnover growth rate of 2.5x.
Our methodology and technology has always allowed us to find the best recruiters, according to each type of vacancy, and this has led to a high level of customer satisfaction.
Our Artificial Intelligence algorithm helps us to constantly evaluate our recruiters and always match the most specialised recruiters to a specific vacancy.
We have an end-to-end platform for the selection process that allows us to store all the events of a selection process: candidate uploaded, accepted, called for interview, rejected with reason, offered with quantities, and so on up to 34 different variables and composite variables. The Machine Learning algorithm allows us to identify the correlation between these variables and the future probability of hiring, so it identifies which recruiter has managed to do a better job and, therefore, be at the top of the scoring.
With our business model, the cost of candidate acquisition becomes variable, differentiating us from agencies that bear structural costs and job portal platforms, which have high costs for updating candidates. This has allowed us to scale the business with positive EBITDA from day one.
Recruiters come to TalentFY looking for a higher turnover - we are their "client" - and they stay thanks to the "economy of scale": the freelance recruiter can make much better use of his interviewing work and has no "wastage". In other words, if the client is outside TalentFY, he/she will have only one vacancy and will have interviewed maybe 10-15 good candidates. Whereas if you collaborate through TalentFY you will have several very similar processes at the same time and thus be able to place each good candidate in the vacancy with the best fit. In this way, if you interview 15 good candidates, you are sure to place 4-5 instead of the 1 you would place if you had a single vacancy that a client of yours can offer you outside TalentFY.
Thus, the user that TalentFY addresses with all five senses is the client. We maintain a close relationship with them as a recruiting service provider and maintain a single point of contact during all their selection processes - the client communicates with TalentFY, not with the recruiters.
On the more financial side, the 3.5M pre-money valuation allows investors to achieve excellent 3-6 year multipliers.
Manteniendo la tasa de crecimiento anual en facturación, algo factible, siendo conscientes de que ya estamos abriendo Portugal e Italia, significará que en 2024 podríamos cerrar el año con unas ventas de 7M y un Margen Bruto de 2,75 M. Y en 2027 podríamos alcanzar una facturación de 40M con un margen bruto de casi 15M y un EBITDA superior a los 3M.
Las valoraciones de Exit de los distintos marketplaces del sector HR son EV/Margen Bruto de 3x o 4x y de EV/EBITDA de 8-10x. Esto significa que en 2025 podemos Enescalar a una valoración cercana a los 10M y en 2028 subir a una valoración cercana a los 30-40M. Con ello, resulta factible lograr un 8-10X a 5 años vista en una empresa que ya está facturando +1M en 2022 y que en un 80% del histórico de trimestres ha logrado EBITDA positivo.