You go in for a handshake, but they won’t let go, and they wind up purchasing your entire business. At least, such appears to be the case with Talentspace, a European virtual and hybrid recruiting platform that was recently bought by talent network Handshake. It’s Handshake’s first acquisition, following a $200 million Series F funding round in January that valued the company at $3.5 billion. Annual recurring revenue for the firm just surpassed $100 million.
Handshake originally supplied the $100 million ARR figure, but after the piece was published, they contacted me to clarify they’re still “approaching” that level but haven’t reached it yet. It’s worth noting that this figure is remarkably comparable to the one they gave TechCrunch in May for their $80 million investment round. Second update: A representative for Handshake stated that the company “remains on course to reach (and likely exceed) $100 million in ARR.”
Handshake is a network that helps students and graduates connect with recruiters and get employment, with over 1.7 million connections in 2021. To date, the firm has attracted over 21 million students and graduates from over 1,400 educational institutions, ranging from private colleges on tech bootcamps, to its platform. The organization has set itself apart by focusing on matching diverse students with difficult-to-find employment; their user base comprises people from over 290 minority-serving universities.
We don’t know a precise number for the transaction’s cost, but Handshake said it’s between $10 million and $50 million. Talentspace has garnered $4 million in venture funding, according to Crunchbase, indicating that a transaction in that area would be a good exit for the smaller firm and its backers. With such a large user base, a strong business, and over 650,000 businesses using the platform to find talent, one may wonder what else Handshake need from other organizations.
Talentspace creates recruiting experiences for college students on behalf of clients like as Amazon and Porsche, while Handshake manages professional networks and graduate recruitment for a wide group of college students. The most significant distinction between the two organizations, according to CEO and founder Garrett Lord, is that Talentspace provides a live virtual day-of event experience for career fairs or recruitment events. He stated that students may jump in and out of sessions, find employers to click into, and view a stream of activities.
“Today, it comprises hybrid virtual [and] in-person forms,” Lord explained, “which provide us considerable learning value in terms of user behavior and corporate uptake.” “Talentspace is a bilingual platform that is used in a variety of nations. Finally, regardless of institution affiliation, all applicants have access to Talentspace, which is important for rapid global expansion.” That final statement is particularly intriguing: Handshake believes that Talentspace may assist it in achieving its worldwide goals, particularly by widening the product’s appeal to those who aren’t necessarily students at traditional colleges. Handshake was first introduced in the United Kingdom in 2020, and as a result, its presence there is substantially lower than in the United States.
“Career services infrastructure in this market is significantly less robust than it is in the United States and the United Kingdom,” Lord told TechCrunch. “On the other hand, event management is a common requirement among institutions in continental Europe, and it provides a low-key way to interact with universities and onboard students.” He believes the acquisition will help Handshake establish a “solid entry point” in Europe ahead of an official launch. Both firms must demonstrate that virtual recruitment and networking are the greatest ways for students to jumpstart their careers, a flavor that Handshake is (clearly) certain is not going away. When it comes to who Handshake would buy next, the founder didn’t reveal which verticals they’re looking at, instead adding, “We will continue to keep an eye on technologies that makes virtual recruitment more customized and accessible for all students.”
