Sean Fahey is keeping some impressive company today.
The Founder and CEO of Moncton-based HR software maker VidCruiter is in Washington, D.C., where he is attending the Select USA conference. He’s been meeting with the American ambassador to Canada Bruce Heyman, and later in the day will hear a keynote address by President Barack Obama.
It’s interesting that Fahey is visiting the American capital because he’s a student of business processes and strategy who has learned a lot from observing how they do things in the States. It’s one reason VidCruiter is now doubling annual revenue and hoping to triple it.
“I’m sort of panicking because our revenues are only doubling every year,” he said in an interview last week, adding that “panicking” may be overstating the case. “The standard in Silicon Valley is tripling and that is what we’re working toward.”
I last interviewed Fahey in early 2013, when he was about to attend the Canadian Technology Accelerator in Silicon Valley. I contacted him Friday to discuss his trip to Washington, which came about after he met Heyman at a New Brunswick Export Awards ceremony. Before long he steered our conversation to Entrevestor’s recent report on gazelles, which we defined as companies with at least $100,000 in revenue, gaining 20 percent annually over four years.
Twenty percent, said Fahey, simply wouldn’t cut it in today’s climate.
Fahey said that Silicon Valley investors are only interested in companies that are tripling revenues. VidCruiter has never taken on VC investment, though it has raised more than $1 million in its history. Yet the company aims for that Silicon Valley standard. It’s a philosophy that has brought it a strong client base, including ten Fortune 500 customers.
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VidCruiter started in 2009 by producing a tool that recruiters could use to conduct interviews online to streamline the hiring process. Fahey describes it as a part-time project in the early days, then in 2012 he and his team rebuilt the platform, which they launched a year later. “We set out to build a n automated hiring system but video is a core component of that,” said Fahey.
VidCruiter still has the video interview system, but it now combines it with an applicant-tracking system and other features that help to simplify workflow for recruiters. It’s a crowded field as there are about 1,000 competitors in applicant tracking, and about 80 in video-interviewing. He added that VidCruiter is probably in the top three or four providers of the video-interviewing application.
The product is gaining acceptance and the VidCruiter website lists such clients as General Motors, Groupon and Tufts Medical Centre.
“We’re getting more and more people contacting us,” said Fahey. “We’re breaking records with new clients. … and revenues are increasing all the time.”
Right now, Fahey is hoping revenues in 2016 will triple those of 2015. But he admits that is difficult in Atlantic Canada of the challenges in raising the multi-million-dollar funding rounds needed to fund big sales teams. So East Coast Canadian companies have to be creative in growing sales.
“You can’t do it the same way that they’re doing it [in Silicon Valley] so you have to be thinking outside the box on how to do it,” said Fahey. “It’s all about distribution. You have to form distribution channels with the right partners.”