Breaking
$45M Series B raised in 2024 to modernize background checks Built by Eric Ly, LinkedIn's founding CTO Industry's first MCP server for AI verification workflows 7x revenue growth in a single year Trusted across staffing, healthcare & the gig economy $83M+ total funding raised $45M Series B raised in 2024 to modernize background checks Built by Eric Ly, LinkedIn's founding CTO Industry's first MCP server for AI verification workflows 7x revenue growth in a single year Trusted across staffing, healthcare & the gig economy $83M+ total funding raised
Company Profile / Trust Infrastructure

KarmaCheck.

The background check, rebuilt for the speed of hiring - and the age of AI agents.

Founded 2019 San Francisco, CA Series B AI · SaaS · Healthcare
KarmaCheck logo and brand
KarmaCheck, photographed mid-pivot from "necessary evil" to "infrastructure" - the logo a staffing recruiter now recognizes on sight.
Who they are now

A background check that finishes before the coffee gets cold.

Somewhere right now a staffing recruiter is trying to place a nurse before a shift starts at 7 a.m. The candidate is willing. The hospital is desperate. The only thing standing between them is a background check - the step that, for decades, took days and explained nothing. KarmaCheck is the company betting that the wait was never necessary.

Headquartered in San Francisco and founded in 2019, KarmaCheck builds the verification layer that hiring runs on: criminal and credential checks, real-time identity verification, drug screening, and occupational health, all behind a single API that plugs into the tools staffing and healthcare teams already use. It is unglamorous work. It is also the bottleneck nearly every hire passes through.

"AI automation you need. Background checks you trust."

- KarmaCheck, company tagline
The problem they saw

The screening industry got comfortable. Comfortably slow.

Background checks are a multi-billion-dollar industry built on a curious arrangement: the slower and more opaque the product, the less anyone seemed to mind. Candidates waited. Recruiters chased. Results arrived as PDFs with no context and plenty of bias baked in. For most incumbents, that friction was a feature - it was the business.

KarmaCheck looked at the same picture and saw a different story. In a labor market that runs on staffing agencies and gig platforms, where a delayed start date means a lost placement, the background check had quietly become the most expensive five minutes in hiring. The data existed. The technology to verify it fast existed. The will to rebuild the pipe did not - until it did.

"KarmaCheck stands out as a leader in a critical sector ripe for new approaches."

- Douglas Romanoff, Partner, Parameter Ventures
The founders' bet

LinkedIn's first CTO went looking for his second act. He found it in the boring stuff.

Eric Ly co-founded LinkedIn with Reid Hoffman in 2002 and served as its founding CTO, building the technical spine of a network that eventually sold to Microsoft for $26.2 billion. He had studied at Stanford and MIT and built systems at NeXT, IBM, and Sun before any of it. He could have chased anything next. He chose background checks.

The bet, made alongside co-founders Anoop Kundra and Mark Lieberwitz, was straightforward and slightly contrarian: trust is infrastructure, and infrastructure should be fast, fair, and programmable. If LinkedIn made professional identity visible, KarmaCheck would make it verifiable - and do it in a way that reduced bias rather than encoding it. Investors eventually agreed, to the tune of more than $83 million.

"If LinkedIn made who you are visible, KarmaCheck's wager is that proving it should be just as instant."

- On the founding thesis
The product

One API. Every check. Now answering to AI agents, too.

KarmaCheck collapses what used to be a dozen vendors into a single platform. The headline act is speed, but the quieter achievement is breadth - and, in 2025, a genuinely novel front door.

Screening

Background Checks

Fast, accurate criminal, employment, education, and credential checks on an easy-to-use platform.

Identity

Fraud & ID Verification

Real-time identity verification plus synthetic-ID and credential fraud detection.

Health

Drug Screenings

Standard, rapid, and custom panels - urine, hair, and saliva - with digital scheduling.

Health

Occupational Health

A nationwide clinic network for occupational screenings, booked digitally.

AI

KarmaCheck AI Agents

Automation that augments compliance and credentialing teams instead of replacing them.

Developer

MCP Server

The industry's first Model Context Protocol server - AI agents run verifications from a prompt.

"The same developer-first pattern as Stripe, Plaid, and Twilio - pointed at the question of whether someone is who they say they are."

- On the KarmaCheck MCP Server, launched August 2025

The short, busy life of KarmaCheck

  • 2019Founded in San Francisco by Eric Ly, Anoop Kundra, and Mark Lieberwitz.
  • 2022$15M Series A led by Velvet Sea Ventures - aimed at equity and inclusion through rapid, scalable checks.
  • 20237x revenue growth as staffing and healthcare clients pile on.
  • 2024$45M Series B led by Parameter Ventures; total funding tops $83M.
  • 2024symplr partnership automates healthcare credentialing.
  • 2025MCP Server ships - the industry's first agentic interface for identity and background checks.
The proof

Customers don't care about your thesis. They care that the nurse starts on time.

The clearest evidence that the bet is working is who keeps signing up. KarmaCheck's roster spans franchise networks like Domino's and McDonald's and a deep bench of staffing firms - Thrive Staffing, Cell Staff, KP Staffing, PRN Healthcare, ACD Direct - the kind of operators who feel every hour of screening delay in their margins.

$83M+
Total funding
7x
Revenue growth, 2023
100+
Employees
1st
MCP server in category

Funding, stacked

// disclosed venture rounds, USD millions
$15M
Series A
2022
$45M
Series B
2024
$83M+
Total
raised

The bars get taller; the wait, in theory, gets shorter. Figures reflect publicly disclosed rounds and may be approximate.

Then there are the partnerships that signal where this is going. The integration with healthcare software company symplr put KarmaCheck inside the credentialing systems hospitals already trust. Native hooks into Bullhorn and Workday meant recruiters never had to leave their workflow. The MCP server, meanwhile, works with LangChain, AWS Bedrock, n8n, and Microsoft Autogen - which is a long way of saying an AI agent can now order a background check the way it would call any other tool.

"Powering the Future of Trust with KarmaCheck AI."

- KarmaCheck
The mission

Make trust fast - and, almost as an afterthought, make it fair.

The Series A came with a phrase the company keeps returning to: equity and inclusion through rapid, scalable background checks. It sounds like a slogan until you remember that the old system's delays and opacity fell hardest on the people who could least afford to wait - the hourly worker, the traveling nurse, the gig driver one check away from a paycheck.

KarmaCheck's argument is that speed and fairness are the same project. A check that returns in minutes, with context instead of a cryptic flag, is a check that lets more qualified people through faster. The company would rather build that as plumbing than preach it as a cause.

"Trust, but verify - automatically. The verification just stopped being the slow part."

- The KarmaCheck premise
Why it matters tomorrow

When software starts hiring, someone has to vouch for the humans.

The interesting frontier isn't faster checks for recruiters. It's that AI agents are starting to do the work recruiters used to - sourcing, scheduling, onboarding - and those agents need a way to ask "is this person real, and are they cleared?" without a human in the loop. KarmaCheck's MCP server is a deliberate land-grab for that question. Be the trust layer agents reach for, and you become infrastructure for an economy that hasn't fully arrived.

So picture that 7 a.m. shift again. The nurse who was once stuck waiting on a PDF is already badged in. The recruiter never opened a second tab. And somewhere in the stack, an AI agent ran the check, read the result, and moved on - because KarmaCheck made the slowest five minutes in hiring disappear. That's the whole company, really: it took the step everyone dreaded and made it the step nobody notices.

"The background check used to be where hiring waited. KarmaCheck is making it the part hiring forgets about."

- Closing the loop