Background Screening Tool Raises $30M Series B
YardstikCompany
Harbert ManagementInvestor
Rally VenturesInvestor
MissionOGInvestor
Crosslink CapitalInvestor
GrotechInvestor
Great North VenturesInvestor
Yardstik, the Minneapolis‑based human‑trust platform, raised $30 million in a Series B round led by Harbert Growth Partners, with participation from Rally Ventures, MissionOG, Crosslink Capital, Grotech Ventures and Great North Ventures. The capital will fund new fraud‑prevention and continuous‑monitoring capabilities for employers.
Yardstik announced a $30 million Series B financing on August 27, 2026, led by Harbert Growth Partners. Existing backers Rally Ventures, MissionOG, Crosslink Capital, Grotech Ventures and Great North Ventures also participated, bringing the company’s total capital raised to $65 million.
Deal Terms
The round was structured as a venture‑funding Series B; specific valuation or revenue multiples were not disclosed. Harbert Growth Partners acted as the lead investor, while the other participants reaffirmed their support by contributing alongside the lead. The infusion is earmarked for product expansion, particularly around fraud‑prevention defenses, motor‑vehicle report integration, OIG exclusion monitoring, and automated credential‑expiry alerts.
Market Context
Yardstik’s platform blends traditional background screening with real‑time risk monitoring across the employee lifecycle. By delivering continuous alerts when licenses, insurance or certifications lapse, the company addresses a gap where most legacy screening solutions only provide a single‑point‑in‑time check. The firm recently launched “Fraud Insights” and “Continuous Monitoring” features at no extra charge, positioning itself as a comprehensive risk‑management layer for gig marketplaces, staffing firms, healthcare providers, transportation and logistics operators.
The company reported 149 % year‑over‑year revenue growth and a 98 % account‑retention rate over the past three years, underscoring strong product‑market fit. Its client roster includes Gopuff, Liveops, TaskRabbit, Sharetown and HUNGRY, and it integrates with major ATS and HR platforms such as Greenhouse, Lever and Paylocity. Yardstik’s recent inclusion in the Inc. 5000 (rank 861) highlights its rapid scaling trajectory.
Why It Matters
For Yardstik, the Series B provides the runway to deepen its continuous‑monitoring moat and accelerate feature development that differentiates it from traditional background‑check vendors. The capital enables faster integration with ATS ecosystems and the rollout of industry‑specific fraud modules, which should bolster its already high retention rate and open cross‑sell opportunities within existing accounts.
Competitors that rely on static, point‑in‑time checks now face heightened pressure to add real‑time monitoring capabilities or risk losing enterprise customers seeking end‑to‑end risk visibility. Yardstik’s expanded funding may also trigger a wave of consolidation as larger HR‑tech platforms look to acquire or partner with firms that have already built the continuous‑monitoring infrastructure.
Key Points
- Yardstik closed a $30 million Series B led by Harbert Growth Partners.
- Existing investors Rally Ventures, MissionOG, Crosslink Capital, Grotech Ventures and Great North Ventures participated in the round.
- Funding will be used to develop fraud‑prevention defenses, motor‑vehicle reports, OIG exclusion monitoring and automated credential alerts.
- The company posted 149 % YoY revenue growth and a 98 % account‑retention rate over the past three years.
- Yardstik serves gig marketplaces, staffing, healthcare, transportation and childcare sectors, counting Gopuff, Liveops and TaskRabbit among its customers.
Analysis
Yardstik’s $30 million Series B underscores growing investor appetite for SaaS solutions that extend risk management beyond the hiring moment. While the round’s valuation multiple was not disclosed, the company’s 149 % YoY revenue growth and near‑perfect retention suggest a premium multiple relative to typical B2B SaaS benchmarks. The infusion arrives as enterprises across gig, staffing and regulated industries grapple with escalating fraud and credential‑verification challenges, driving demand for continuous‑monitoring platforms that can be embedded via APIs or ATS integrations. For operators, the capital enables faster rollout of high‑margin features that deepen stickiness and open upsell pathways, potentially improving net revenue retention beyond the industry average of 110 %. Investors may view Yardstik as a bellwether for a sub‑segment of HR‑tech where recurring monitoring fees can generate predictable ARR streams, encouraging further capital allocation to similar models. The deal also signals that venture firms are willing to back companies that combine compliance, security and workflow automation, a convergence that could reshape the competitive dynamics of the background‑screening market.