French startup Clustree has just raised a new funding round of $2.9 million (€2.5 million) with Alven Capital and business angels. As a reminder, Clustree automagically finds the right person for the right position within big companies using big data. It’s a great tool for HR departments who might not think about internal candidates and employees who might feel stuck in their jobs.
The product has gone a long way since I first covered the startup. When it raised its first funding round in July 2014, the company mostly relied on a PowerPoint presentation.
Since then, many big public French companies have started using the product. You upload the resumes of your employees and Clustree compares these résumés with 30 million career paths to see what your employees could do next.
It’s a simple idea, but also a lucrative one. Clustree uses a software-as-a-service approach and everything runs on the company’s servers. It also means that the company is generating recurring revenue with big companies — these contracts can be very expensive. Engie, Canal+ and Orange are some of the company’s clients.
With today’s funding round, the company plans to add new features and get new French clients. The team will double in the coming months as well. In the future, it won’t just be about finding the perfect internal candidate for a job. Clustree is also looking at potential international expansions.
But one step at a time, there are still many potential clients in France. HR departments should definitely use more data to make educated decisions, and that’s why Clustree has potential.