Today, Schibsted announced an investment in Stockholm-based recruitment company Demando. The company has developed a platform for so-called passive recruitment. This implies that businesses can search for suitable candidates who are not necessarily actively looking for a job.
Through Demando’s online platform, the candidates are anonymised, and employers looking for specific technology expertise can proactively identify and contact potential candidates based on their skills, experience or profile. The businesses can also post job ads, making Demando’s platform useful for everyone involved in the recruitment process. Since its start in 2015, they have assisted thousands of employment processes.
Schibsted will invest SEK 7.3 million in a funding round that raises a total of SEK 10.3 million. The other owners are Swedish angel investors and the founders of Demando.
CEO Mathias Deljerud Hamlin believes Schibsted Ventures is a great match for the company. “Schibsted is one of the Nordic region’s most important players within recruitment through its marketplaces like FINN in Norway and Blocket in Sweden, and has a network which is incredibly exciting for us. At the same time, we represent something new that Schibsted does not have in its portfolio.”
A recent survey from YouGov in Sweden shows that 64% of employees actually want to be headhunted. 80% are open to new opportunities.
Hamlin says that what Demando does, is to put this passive job market into a system, and in that way ensure that companies have a larger pool of candidates to choose from.
“With over 50,000 registered candidates and growing, we are constantly getting confirmation that candidates really long for an alternative to the traditional ways of changing jobs. We see unnecessary barriers in the labour market, and the candidates appreciate being able to be both anonymous and passive – but still explore what the market has to offer.”
Hamlin emphasizes that the trend within passive recruitment is constantly growing, and the experience from Sweden is that the best candidates want to be contacted directly by future employers.
Employers want the best candidates
Pontus Ogebjer, Investment Manager at Schibsted Ventures, believes the Swedish company Demando fits well with the profile of companies Schibsted wants to invest in. He is impressed by what the entrepreneurs have achieved in recent years within a trend that has been rapidly developing.
“The future job market is a strategic investment area for Schibsted through our marketplaces, and the increase in passive recruitment is a trend we have seen as especially interesting. Demando is one of the very few players who have truly found a solid solution, and delivers a service that both employees and employers are satisfied with.”
Ogebjer, who following the investment round joins the Demando board, believes the company fills a gap in the labor market.
“All employers want the smartest and best heads, but it is rare for businesses to have an overview of candidates other than those who apply for the vacant jobs or are presented by recruitment agencies. With Demando, this changes, at least in positions related to IT and technology,” he adds.