VC money floods staffing tech

Signal Summary: Venture capitalists just poured record cash into staffing platforms while recruiters can't find quality candidates despite application floods. Meanwhile, Amazon, UPS, and PwC are slashing workforces like it's 2008 all over again. Plus, the candidate who went from “rooting-for-you” to “restraining-order” territory in record time.

First time reading? Sign up to get weekly signals.

^{P.S. I draw all images & cartoons with an iPad Pro, Apple Pencil, and Procreate.}

HERE’S WHAT HAPPENED LAST WEEK ↓

SIGNAL 1
Staffing tech just became Silicon Valley's favorite investment

The boom: Workforce solutions firms captured 9.7% of global venture capital funding in 2024. That's billions flowing into platforms that are modernizing how companies find, manage, and deploy workers.

Why investors are flooding in:

• AI-powered matching and automation solving age-old recruiting inefficiencies

• Remote work creating massive demand for workforce management platforms

• Labor shortages driving companies to adopt tech-enabled staffing solutions

The opportunity: VCs aren't just investing in technology, they're investing in companies that combine tech with service delivery. Platforms that can match workers faster, manage compliance better, and scale operations without proportional headcount growth are commanding premium valuations at exit.

Signal → Strategy: Audit your tech stack now if exit's on your radar. AI matching, modern ATS, and workflow automation aren't just efficiency plays, they're valuation multipliers when M&A conversations begin. Tech-enabled firms command 7-10x EBITDA multiples versus 2-3x for traditional agencies.

Go Deeper: Staffing Industry Analysts VC Report

SIGNAL 2
The application avalanche is burying quality candidates

The problem: Recruiters report 60% more applications per role, but candidate quality dropped like a rock. It's like shopping at a Black Friday sale - more options somehow makes finding what you need impossible.

Why it's broken:

• AI-powered resume blasters spray applications everywhere

• Desperate job seekers apply to everything remotely relevant

• ATS systems can't filter signal from noise effectively

Signal → Strategy: Demo staffing-specific AI screeners this week. These platforms integrate with your ATS, conduct initial qualifications automatically, and surface only qualified candidates worth your time.

Go Deeper: HR Brew Recruiting Study

SIGNAL 3
Corporate America's efficiency purge continues

The carnage: Amazon, UPS, and PwC announced major workforce reductions this week. Because apparently "do more with less" wasn't just a 2023 trend - it's the new operating model.

The cuts:

• Amazon trimming corporate roles despite strong retail performance

• UPS reducing headcount amid delivery volume optimization

• PwC slashing positions after aggressive hiring during pandemic boom

Signal → Strategy: Target displaced professionals from these cuts for contract placements. They're experienced, immediately available, and desperate to avoid resume gaps while permanent roles stay scarce.

Go Deeper: Morning Brew Layoff Coverage

RECRUITING CONFESSIONAL
When Desperation Becomes Stalking

Recruiting Confessional A weekly series featuring anonymous stories from recruiting and staffing professionals. Submit yours here.

The Setup: Hard-to-fill position, perfect technical candidate who needed visa sponsorship. Told him we don't typically sponsor, but I'd fight to get approval. Set clear expectations: two weeks for decision due to chains of command.

The Disaster: For the next two weeks, he called 15 times a day (not exaggerating), plus LinkedIn messages and emails. Went from rooting-for-you to restraining-order territory in record time.

The Twist: During our conversation, he claimed he had "several other offers" and we'd lose him if we didn't act fast. Cool story, bro - why didn't you take those offers then?

Have a story? Submit it here

WEEKLY POLL

SHARE THE SIGNALS
3 people you should share these signals with:

1. Your tech-forward colleague who keeps saying "we should modernize"

2. That recruiter complaining about application quality daily

3. Your sales rep who needs fresh leads from recent layoffs