Lithuanian Startup NO-CV Picks up EUR 212,500 Investment For Further Expansion
‘Jobseekers actually don’t like writing CVs, and employers don’t like reading them,’ – the hypothesis that originated exactly one year ago today, Gediminas Vilčiauskas, the founder of the NO-CV startup, can now validate by figures.
Having started on his own, the entrepreneur has managed to build up a team of 15 people within a year. The NO-CV App now has about 50,000 users, and about 800 companies from Lithuania, Latvia, and Denmark have already made use of this innovative recruitment platform.
Receiving investments totalling nearly half a million
The idea of a startup offering recruitment services without conventional CVs was regarded as an attractive one by investors as well. The 70V revenue accelerator and business angels were the first to invest in the young business. An investment of EUR 320,000 was intended for the start: the development and implementation of a strategy.
In the summer, G. Vilčiauskas introduced the already quite a shape acquiring startup to Justinas Pašys, Managing Director at LitBAN, the Lithuanian Business Angel Network. It was thanks to his support and initiative that the second investment, which totalled EUR 150,000, was received for improving the App further.
A few months later, with the interest of not only Lithuanian but also foreign companies, the third investment of EUR 212,500 reached NO-CV at the end of the year. It was granted by the business angels of the previously mentioned LitBAN network and LatBAN, as well as business angels from Estonia.
‘It was truly beyond my imagination at the beginning of the year that it is possible to attract investment three times in a year. It was a huge challenge for me, as well as for the team. For those thinking of creating a startup, I can say that now is a perfect time to do that in Lithuania. What helped me the most was the advice received from J. Pašys and consultations with the founders of other startups,’ says G. Vilčiauskas.
Accelerator programs are leading towards the U.S. market
The NO-CV startup is currently participating in two accelerator programs. The first of them is developed according to the 70V foundation methodology.
‘It’s amazing that the 70V revenue accelerator not only grants investments but also teaches sales tactics. It helped us a lot, as, already within the second month, we reached the record of this accelerator: 96 booked meetings with clients per month,’ says the founder of NO-CV.
Another accelerator, Newchip, is designed to prepare for the attraction of US investment funds.
‘One has to complete an intensive training program, pass qualification tests, and then can introduce oneself to over a thousand US investors,’ says G. Vilčiauskas.
Increasing numbers of foreign customers
The list of NO-CV customers already includes companies from Lithuania, Denmark, and Latvia that are looking for employees from the Baltic States with the help of the NO-CV App. Recently, “Dao”, one of the largest parcel delivery companies in Denmark, has successfully hired electric scooter drivers from Lithuania using the NO-CV platform.
‘The company is satisfied with the result and therefore plans to cooperate with us in the future. However, our goal is bigger. We strive not only to help foreign companies search for employees in Lithuania but also to encourage them to use this tool domestically. The employment market has changed significantly due to the pandemic, so now, when many countries are facing a great shortage of labor force, innovative employee search solutions are needed,’ G. Vilčiauskas is convinced.
Fixed fee per ad has been replaced with a subscription
Based on analysis of the market and consideration of customer needs, the NO-CV team has made an important change in pricing. Originally, companies searching for employees used to pay for individual ads, while now a subscription model has been introduced, which means that a company can host an unlimited number of ads for a fixed fee.
‘By moving to this model, we have become a business facilitator that helps to attract and manage the flow of candidates. This is a novelty in the employee search market, as the companies have an opportunity at a sufficiently low price to continuously ensure the visibility of vacancies and to post advertisements,’ explains the entrepreneur.