Y Combinator-backed startup Alex has raised $17 million in a Series A funding round led by Peak XV Partners, with participation from Y Combinator, Uncorrelated Ventures, and several chief human resources officers (CHROs) from unnamed Fortune 500 companies. Founded by Aaron Wang and John Rytel, this round followed Alex’s $3 million seed funding led by 1984 Ventures last year.
Job seekers in many industries will soon find their first interview being taken by AI instead of a human. This talks about a growing trend as recruiters are troubled with increasingly large volumes of applications and time-consuming screening tests. Instead of manually sorting through candidates and conducting repetitive initial interviews, recruiters can now outsource these routine processes to AI systems.
Alex has developed a voice AI platform that autonomously conducts video interviews and phone screens soon after candidates apply for jobs. This AI recruiter automatically handles tasks such as background checks, salary expectations, availability, and even detecting fraudulent applications. By automating such early screening, Alex enables recruiters to focus on more valuable human interactions like building a relationship with pre-qualified candidates.
Aaron Wang, who has previous experience at Facebook and as a quant at a hedge fund, told TechCrunch, “Our AI recruiter does thousands of interviews a day and helps people get hired at some of the biggest companies in the world.” While he declined to disclose specific customers, he confirmed that Alex’s clients include Fortune 100 companies, large financial institutions, nationwide restaurant chains, and Big Four accounting firms.
More Than Just Screening
The recruitment sector’s push for AI-driven interview automation is pretty evident from the line of investors backing Alex. Industry voices like Tim Sackett, General Partner at HR Tech 100 Fund, hail Alex as a “game-changer” in talent acquisition.
Tim Sackett commented, “Adopting the newest and best AI technologies isn’t a nice-to-have anymore; it’s essential for top talent organizations. Alex is leading the charge.” These endorsements highlight how AI-powered automation is quickly becoming indispensable for companies struggling with efficiency and fairness in hiring.
Alex’s platform runs more than 20 automated workflows that seamlessly integrate with the applicant tracking systems companies already use. It does more than just schedule and conduct interviews. It also takes detailed notes, screens resumes, and flags any red flags that might slip past human recruiters. This wide range of features helps companies consider a larger pool of talent while making sure every candidate gets a fair shot.
The technology aims to solve common hiring headaches, like slow hiring times and high recruitment costs, especially when companies have to fill many openings at once. Glassdoor has reported that hundreds of applicants often compete for a single corporate position, yet only a few are interviewed. Alex’s AI aims to streamline this by acting as a 24/7 recruiter capable of managing the initial applicant surge efficiently.
Challenges to Clear
Startups like HeyMilo, ConverzAI, and Ribbon are also developing AI-powered tools to tackle the same hiring challenges. Mercor, a fast-growing AI data labeling company eyeing a $10 billion valuation, started out as an AI recruiting startup before pivoting its focus.
What truly sets Alex apart is the scale and momentum it has gained in such a short time. In just 18 months, Alex claims to have helped tens of thousands of candidates get hired at hundreds of companies. This rapid growth shows that big organizations are ready and willing to embrace AI as a vital part of their recruiting process.
Alex co-founder Aaron Wang envisions a future where AI agents autonomously manage the entire recruiting cycle. “We believe a 10-minute conversation with you tells us much more about your fit for a role than your LinkedIn profile ever could,” he said. By building richer, deeper professional profiles through conversation, Alex aims to revolutionize how recruiting data is collected and used.
For now, Alex’s focus remains on removing repetitive tasks from recruiters’ plates so they can prioritize high-value activities like advising hiring managers and forging connections with top candidates. This not only speeds up hiring but also improves the quality and fairness of talent selection.
