Meet Daniel Callaghan, co-founder and CEO of Veremark
Daniel Callaghan is CEO and co-founder of Veremark, a global background checking and applicant screening startup. Hundreds of companies around the world use Veremark to run automated background checks on job applicants, spanning employment history, academic, criminal, credit, conflict of interest and social media. Since launching in late 2019, Veremark has raised $12.3M in funding.
There’s always a lightbulb moment before the beginning of a new venture. What was that moment for you?
When running my first tech venture I noticed a persistent problem in the hiring process: companies like ours, eager to bring on new talent, were facing frustratingly long waits for background checks to be carried out.
Despite other advances in HR, the screening process had remained stubbornly resistant to automation and, in many cases, checks were still being carried out manually.
Not only did this mean they were taking weeks on end to complete, there was also the potential for errors to be made by overburdened staff. In a worst-case scenario, it meant companies losing talent to competitors while they were waiting to be onboarded.
The lightbulb moment was a wish to simplify and speed up the hiring process, and that’s what we did. We created a single online platform which employers can use to run up to 40 different global background checks on applicants. At the same time, candidates are alerted to any documents they need to upload to the platform and kept updated throughout the process.
Using Veremark, checks can be carried out in a matter of days – if not hours – saving precious time for employers.
Tell us about your experience prior to launching your business?
I developed and funded my first business in 2009 while studying for an MBA at IESE business school in Barcelona. This was also in the HR tech space: a kind of ‘ebay’ for independent business consultants, aimed at companies wanting qualified experts but that couldn’t afford the huge fees routinely charged by major consultancy firms.
What inspired you to launch your business and what is the end goal?
Having already achieved success with my first business, I was eager to build another company from the ground up. Discovering a problem we could solve, and realising how much demand there was for a streamlined, easy-to-use screening platform, inspired my co-founders and I to take the plunge and launch Veremark.
In the future, we want to see our platform– which is already used by some of the world’s top companies including Pepsi, ComplyAdvantage and Schneider Electric – become the go-to resource for firms for all their pre-hire screening and rescreening needs.
Looking at the broader picture, we want to transform the way we trust each other in the digital age by harnessing the power of new technologies.
What’s the biggest lesson you’ve learnt so far as an entrepreneur?
That the unexpected can happen at any time – and not to panic when it does. The pandemic was a blow to businesses across the board but for our fledgling startup, which launched just a few months before the virus swept the globe and hiring came to a halt, it couldn’t have come at a worse time.
But we held our nerve. We spent the first few months of 2020 focusing on our tech and making tweaks and changes to ensure that when hiring took off again, as we knew it would, we’d be raring to go.
As it was, changing work patterns sparked by the pandemic – which saw more companies hiring remotely and internationally – meant demand for our service soon rocketed.
It was an important lesson in remaining calm – but it tested our mettle. Happily we were able to adapt proactively to a fast-changing situation.
How did you fund the business in the early stages?
Initially, my two co-founders and I put our own money into the business to get it off the ground, before raising a small amount from angel investors. We later went on to raise $2.8M in a seed funding round and, this summer, raised a further $8.5M in equity and venture debt funding.
What does your business offer its target audience?
Around 40 different background checks across 130 countries – encompassing everything from employment history gap checks to social media screening.
We also offer something unique that we hope will one day become currency in hiring. The results of all background checks are packaged into what we call a ‘Career Passport’, which is Blockchain verified, and given to the employee. This can be taken to future roles, minimising the need for repeated checks.
How do you set yourself apart from other businesses in your industry?
As a global business, with offices in London, Singapore and Manila, and a regional presence in Australia, India and Hong Kong, we’re better placed than many of our competitors to offer a truly global service.
Today, as many companies look to expand the pool of available talent beyond their borders, they may need background checks to be carried out in multiple different countries, which each have their own laws and customs regarding what information can be sought about a candidate. We carry out locally-compliant checks around the globe.
How important is company culture and what is your top tip to get it right?
Company culture is crucial: businesses thrive when every team member feels engaged, heard and inspired to contribute their ideas.
As a global team with employees spread over the world and many of our staff working remotely, ensuring our people feel part of a team is even more crucial. Technology helps foster this for the most part but it’s no substitute for face to face interactions, which is why we bring our teams together in person as much as we can – most recently for two days of learning and team bonding in the Philippines.
Is word of mouth working to your advantage?
Word-of-mouth referrals from our clients have been absolutely key to our rapid growth. Between September 2021 and July 2022, monthly revenue at the company grew by 300% and circa 20% of our revenue came directly from referrals.
It proves that our strategy of being laser-focused on client concerns and responsive to feedback really does pay off.
What are your top three tips to hire and develop new talent?
Be sure to vet new employees thoroughly. That means not only checking they really do have the academic qualifications or employment experience they claim to, but also using the variety of tools available to check they really are the best fit for your team. This could mean checking their social media to ensure they’ve never posted inappropriate content, or ensuring they don’t have a conflict of interest.
Make the hiring experience as smooth as possible for the employee. Remember, your reputation as an employer starts the moment they are first invited to interview. Good communication will help you stand out and could even be the winning factor that persuades top talent to join your team instead of a competitor.
Offer employees plenty of training and development opportunities. This won’t just benefit the company in terms of boosting innovation, it will make your staff feel rewarded, engaged and improve retention. People leave when they’ve stopped learning.
