Breaking
Paraform raises $40M Series B led by Scale Venture Partners Total funding to date: $65M across four rounds 10,000+ independent recruiters on the network Trusted by 1,000+ companies including Palantir, Rippling & Cursor Founders John Kim & Jeffrey Li first tried to recruit each other 3x faster to hire · 70% interview rate · 98% satisfaction
YesPress Company File San Francisco, CA · Founded 2022
Paraform logo

PARAFORM

The recruiting company that looked at a market racing to replace people with software, and decided to bet on the people instead - with the software riding shotgun.

A two-sided hiring marketplace where expert recruiters and custom AI agents work together to fill the roles that matter most - in days, not months.

$65MTotal raised
10,000+Recruiters
1,000+Companies
~60Team
The Story

A Contrarian Bet, Priced at $65 Million

There is a genre of startup pitch, popular right now, that goes: humans are slow and expensive, so we will replace them with a model. Paraform read that pitch, nodded politely, and did roughly the opposite.

The company, founded in 2022 by John Kim and Jeffrey Li, is a recruiting marketplace. On one side sit companies with roles they cannot fill - the kind of roles where a bad hire is expensive and a slow hire is worse. On the other side sit more than 10,000 independent recruiters and boutique search firms, the people who actually know where the good candidates are hiding. Paraform is the layer in between, and its wager is that this layer is worth a lot of money.

The origin story is almost too neat: Kim and Li tried to recruit each other, discovered the process was mostly busywork and very little judgment, and concluded that the industry was broken in a way software could fix - but not by removing the recruiter. By removing everything around the recruiter. Paraform runs the intake calls, collects the hiring-manager feedback, handles the invoicing, and hands recruiters a free AI toolkit for sourcing, matching, scheduling and note-taking. What's left for the human is the part humans are good at: knowing why a candidate would actually take the job.

This is a genuinely interesting question about where value lives. If you believe resumes are the bottleneck, you build a resume-screening robot. Paraform believes the bottleneck was never the resume - it was the coordination overhead and the tacit knowledge, and only one of those is easy to automate. So the AI does the coordination and the drudgery, and the recruiter keeps the knowledge. The company calls this an "Agentic Hiring Platform," which is the sort of phrase that means more once you notice the agents are assistants, not replacements.

Investors, it turns out, will pay for a well-argued contrarian position. In March 2026, Scale Venture Partners led a $40 million Series B, bringing Paraform's total to $65 million. The cap table reads like a hiring problem solved in advance: founders of Canva, YouTube, Instacart, DoorDash and Twitch, plus the CTO of Palantir, the COO of Stripe, and the President of Shopify. These are people who have hired at scale and, apparently, wish they'd had this.

"Imagine if agencies actually worked... nothing quite like Paraform."

The economics are the part worth staring at. A traditional contingency agency keeps something like half of a placement fee, sometimes more, and the recruiter who did the work gets the rest. Paraform flips the split so recruiters keep the large majority, and companies pay only on a successful hire - a flat percentage of first-year base salary, nothing upfront. This is a marketplace design decision disguised as a pricing decision. If you want the best recruiters to bring you their best candidates, you pay them well and you take the paperwork off their desk. Do both, and supply shows up.

And supply did show up, helped along by a macro accident. Waves of tech layoffs pushed a lot of skilled recruiters into an oversaturated market at the exact moment Paraform was building a place for them to monetize their networks. Where most people saw oversupply, Paraform saw infrastructure. The result is a network that companies like Palantir, Rippling, Cursor, Decagon, Cognition, Hightouch and Thomson Reuters now route their hardest roles through - reportedly filling them up to three times faster than the old way.

3xFaster to hire
70%Interview rate
98%Satisfaction
~12 daysTo meet the hire
How It Works

Two Sides, One Marketplace

For Companies

Post the hard roles

Describe the ideal candidate. Get matched with recruiters who have filled similar positions, plus AI agents trained on your hiring preferences - all backed by a dedicated talent strategist. You typically meet the person you hire within about 12 days.

For Recruiters

Just recruit

A free all-in-one toolkit - sourcing, matching, CRM, notetaker, scheduler. AI agents surface the right clients and auto-match your candidate pool across thousands of open roles. Paraform handles intake, feedback and payments so you keep the majority of the fee.

The Agents

AI that learns

Custom AI agents learn from every search and interview to surface candidates that fit a company's specific preferences, integrate with existing ATS setups, and take the busywork off both sides of the table.

The Founders

Two People Who Tried to Recruit Each Other

Co-Founder & CEO

John Kim

Australian-raised, studied robotics at the University of Sydney, and interned at Tesla. Before Paraform he built Ruler, a student-mentor matching platform later acquired by Crimson Education. He now leads a company arguing, against the grain, that recruiting's future is human-first.

Co-Founder & CTO

Jeffrey Li

Co-founder and technical lead behind Paraform's AI agents and marketplace infrastructure. Together with Kim, he turned a frustrating attempt to recruit each other into the thesis for the whole company: automate the coordination, keep the judgment.

Who Hires Here

Roles Routed Through Paraform

PalantirRipplingCursorDecagon CognitionAbridgeHightouchScale HexSemgrepPersonaAugment Code TrabaOwnerThomson ReutersWilson Sonsini Arby'sAvis
The Money

Four Rounds in Under Four Years

RoundAmountDateLed / Notable Backers
Pre-Seed$1.4MMar 2023Primer Sazze Partners, Kevin Lin (Twitch), Scale AI leaders, Founders Inc.
Seed$3.6MApr 2024A* (Kevin Hartz, Eventbrite co-founder)
Series A$20MJun 2025Felicis, with A*, BOND, DST Global, Liquid 2
Series B$40MMar 2026Scale Venture Partners, with Felicis, A Capital, Liquid 2

"In a sea of AI tools, Paraform bets on people."

The company's founding thesis, made literal

Timeline

From a Bad Recruiting Attempt to a Network

2022

Paraform is founded

John Kim and Jeffrey Li launch after finding the recruiting process broken - during the layoff wave that freed up thousands of skilled recruiters.

2023

$1.4M pre-seed

Primer Sazze Partners leads, with Twitch co-founder Kevin Lin and Scale AI leaders joining in.

2024

$3.6M seed round

A*, founded by Eventbrite's Kevin Hartz, backs the marketplace connecting startups to recruiter networks.

2025

$20M Series A

Felicis leads as Paraform stakes out its "bet on people" position amid a flood of AI hiring tools.

2026

$40M Series B

Scale Venture Partners leads; total funding hits $65M with a network of 10,000+ recruiters.

Field Notes

Questions People Ask

What does Paraform do?

It's a recruiting marketplace connecting companies with independent expert recruiters and pairing them with custom AI agents to fill important roles faster - often delivering candidates in days rather than months.

Who founded Paraform and when?

John Kim (CEO) and Jeffrey Li (CTO) founded it in 2022, after trying to recruit each other and realizing how inefficient hiring was.

How much has Paraform raised?

$65M total: a $40M Series B led by Scale Venture Partners (March 2026), a $20M Series A led by Felicis (2025), a $3.6M seed, and a $1.4M pre-seed.

How does Paraform make money?

Success-based pricing: companies pay a flat percentage of a hire's first-year base salary only when a hire is made, and recruiters keep the majority of that fee.

Which companies use it?

Over 1,000, including Palantir, Rippling, Cursor, Decagon, Cognition, Hightouch, Thomson Reuters and Wilson Sonsini.

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