When we exhibited at HRE's HR Technology Expo-- the biggest HR tech conference in the United States -- last month, we noticed something interesting. We were the only outplacement services firm there. There's a reason for this. RiseSmart is in the process of disrupting the $3 billion-plus corporate outplacement market by, for the first time, bringing technology to bear to reduce the industry's cost structure, while improving service delivery. Among our innovations, we search Web-based job listings on behalf of laid-off workers to help them find jobs — something none of the big players in outplacement do currently. We've been fortunate, since moving our offices from Dallas to Silicon Valley last year, to have Norwest Venture Partners (NVP) in our corner. NVP invested $3 million in Series A funding, which has helped us to grow our business to build an impressive roster of clients, including some of the most forward-thinking companies in the Fortune 500. Now we are delighted to welcome Storm Ventures as a RiseSmart investor. We announced today an additional $4.6 million in Series A funding, including $2.8 million from Storm Ventures and $1.8 million from NVP. In addition, Storm Ventures managing director Sanjay Subhedar will join NVP's Venkat Mohan and myself on our company's board of directors. From our press release, here's what Sanjay and Venkat say of the deal:
"RiseSmart has created a business model that promises to be a game changer in the $3 billion plus outplacement industry," Subhedar said. "RiseSmart's Transition Concierge is disrupting the cost structure for corporate outplacement providers, while leveraging technology to deliver superior value to a growing roster of Fortune 500 clients. " Said Mohan: "RiseSmart has grown rapidly since NVP made its initial investment in June 2008. The company has gone the extra mile to provide an excellent customer experience to both corporate clients and transitioning workers – and that has paid off in word of mouth and new business referrals."
I can only express my deepest gratitude in the confidence Storm Ventures and NVP have shown in RiseSmart. We don't intend to disappoint them.