Yardstik Inc., a startup specializing in continuous workforce fraud monitoring, announced it has closed a $30 million growth funding round led by Harbert Growth Partners. The fresh capital boosts Yardstik’s total funding to $65 million and supports its mission to provide employers with real-time insights into employee trustworthiness throughout employment.
- Raised $30M in Series B round led by Harbert Growth Partners
- Platform offers continuous monitoring and fraud detection post-hire
- 99.4% customer satisfaction with growing revenue and retention
What happened
Yardstik Inc. announced the closing of a $30 million Series B funding round, increasing its total capital raised to $65 million. The round was led by Harbert Growth Partners and included participation from existing investors like Rally Ventures and Crosslink Capital. Yardstik offers a platform that continuously monitors employees to detect potential fraudulent activity throughout their tenure, going beyond traditional one-time background checks.
The company introduced a new Fraud Insights feature that provides HR teams with a real-time aggregated view of risk signals across their workforce. Yardstik’s platform integrates seamlessly with common applicant tracking and HR systems via an API, enabling easy embedding of its trust infrastructure into existing workflows. This investment enables Yardstik to accelerate development and broaden access to its modern workforce protection solutions.
Why it matters
Most companies traditionally conduct background checks only during hiring, but employee behavior and risk factors can change over time. According to Yardstik, occupational fraud schemes often go undetected for about a year on average. The startup’s continuous monitoring approach fills a significant gap by alerting employers in real time to emerging risks like expired credentials or identity misuse.
The platform addresses a longstanding deficiency in HR processes by combining artificial intelligence with identity verification and ongoing surveillance. This proactive visibility helps prevent costly incidents, such as employees working under stolen identities, which Yardstik’s founder personally witnessed. Its data shows one in 30 job applicants fail government identity verification, underscoring the need for persistent risk management rather than snapshots in time.
What to watch next
Yardstik’s growth metrics are promising, with 149% revenue growth last year, a 98% customer retention rate, and 99.4% customer satisfaction. Its client base includes gig economy companies such as TaskRabbit, Gopuff, and Liveops, indicating strong traction in high-turnover industries where fraud risk is elevated. Expanding adoption among larger enterprises will be critical to scaling impact further.
The rollout of enhanced features like Fraud Insights and continuous monitoring could set new standards for workforce risk management. Observers should track how Yardstik leverages its new funding to integrate more deeply into HR ecosystems and possibly extend capabilities such as predictive fraud analytics. Increased regulatory scrutiny and employer liability concerns may also drive further demand for such real-time employee monitoring solutions.