Greenhouse, one of the most promising applicant tracking systems to come to market in recent years, is poised for additional growth due to a massive infusion of capital. TPG, a private equity firm, is pouring $500 million into the company, and taking a majority stake.

As reported by Forbes, "after seeing a spike in hiring activity across the technology industry, Greenhouse reported revenue growth of 30% year-over-year during 2020, says CEO Daniel Chait, who added that Greenhouse has since resumed hiring and now has about 300 employees. That surge in growth prompted negotiations in the last months of 2020 with TPG’s impact investing arm to take a majority stake in the company, he says."

According to its press release:

TPG Growth, the middle-market and growth equity platform within TPG, and The Rise Fund, the global impact investing platform managed by TPG, will jointly invest in Greenhouse to accelerate product innovation, grow into new markets, and enhance solutions aimed at accelerating diversity, equity and inclusion in hiring. Financial terms of the transaction were not disclosed. The transaction, which is expected to close during the first half of 2021, is subject to customary closing conditions.

“Winning businesses are built by talented individuals. Yet every day, organizations around the world base their hiring decisions on hunches and without data, perpetuating biases and limiting human potential. We founded Greenhouse to help companies become great at hiring and reduce bias in the hiring process,” said Daniel Chait, CEO of Greenhouse. “Through this investment from TPG Growth and The Rise Fund, we gain a partner with the resources and vision to support our growth, and who is totally aligned with our mission. The Rise Fund’s unique focus on real, measurable impact is so exciting because it supports our ability to drive positive outcomes for our customers and for society as a whole.”

Full disclosure: this author has gotten to know Daniel Chait over the years, and considers him a friend. That said: one of his core passions is leveraging technology for the greater good, and one key goal is to improve diversity and inclusion in hiring. That commitment is baked into the company's founding, as well as its product focus. He's one of the smartest technologists and business people in the industry, with a clear focus on leveraging technology for good. With that context, the mission of The Rise Fund seems to align with Greenhouse.

The Rise Fund invests in companies driving measurable social and environmental impact alongside business performance and strong returns. With $5 billion under management, The Rise Fund platform works with growth-stage, high potential, mission-driven companies that have the power to change the world.

Headquartered in San Francisco, The Rise Fund was founded in 2016 by TPG in partnership with Bono and Jeff Skoll and offers deep expertise in business solutions to help achieve the United Nations’ Sustainable Development Goals. As part of TPG, The Rise Fund offers investment resources, business-building skills and a global network to help our portfolio companies accelerate growth and impact.

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