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DeveloperAuction Grabs Nearly 8K Applicants For Its First Auction Out Of Beta; Adds Thiel Fellow As COO
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DeveloperAuction, a startup that’s trying to change technical recruiting by letting venture-backed companies bid on top engineers in auctions, is seeing some momentum after coming out of beta last week. The company put a call out for engineering candidates on Hacker News last week for an auction today, and saw about 7,500 applications. They also just picked up a new COO in Sujay Tyle (pictured left), who was a Thiel fellow and previously a vice president of business development at mobile gaming company Scopely. DeveloperAuction is trying to reverse the way that in-house recruiters attract top-flight engineers. Developers that are actively interested in leaving their current companies and have good credentials can apply to be part of a batch of 150 or so candidates. Venture-backed companies like Dropbox and Quora will then bid to offer them interviews. (They usually have to be Series B-funded or later, with some evidence of traction.) These companies try to lure engineers for interviews by sharing compensation details like salary and equity. Developers can pick and choose which interviews they want to take. If the engineer follows through and ends up taking a job with the company, the employer pays DeveloperAuction 15 percent of their base salary. That fee ends up being a little bit less than what a standard recruiting agency might charge at 20 to 25 percent. DeveloperAuction also splits their bounty with the candidate, sending them 20 percent of the 15 percent commission on their first day of the job (plus some balloons and Dom Perignon). A big question though is how far this model can scale. DeveloperAuction is already profitable, but how many high caliber engineers are around? Tyle says that if the company ran three simultaneous auctions per day for entry-level, mid-level and then VP of engineering or CTO-like roles in 10 cities, DeveloperAuction could be a business that generates millions of dollars per month in revenue. During a recent October auction, engineering candidates attracted $78 million worth of offers, (but this isn’t actual cashflow since the candidates have to choose which interviews they want to accept and DeveloperAuction only gets their fee if the person ends up working at a new company in the system). The screening process is still also very hands-on. In the first couple of auctions, the company limited candidates to those who had come from an elite school like MIT or had passed technical interviews
source: http://feedproxy.google.com/~r/Techcrunch/~3/jvqc4JB7eA0/
2013-01-21 11:47:21
Source: http://someit.com/2013/01/21/developerauction-grabs-nearly/
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