Crypto startup Outdefine has raised $2.5 million to help web3 talent find jobs, at a time when the industry is grappling with widespread layoffs.
The seed funding round is co-led by Jump Crypto and TCG Crypto. Other investors include Big Brain Holdings, Formless Capital and Blocore, according to a company release. They will receive combined equity and token warrants.
Outdefine started fundraising in the spring of this year, and closed the round between June and July.
What is a decentralized hiring network?
Founded by father-son team, Romil Verma and Sanjay Verma, Outdefine is a decentralized network that makes it easier for talent to find work through its hiring marketplace. The platform uses tokenomics to try and drive a more equitable and transparent relationship between hiring companies and talent, said Romil in an interview with The Block.
“I saw a lot of pain around having built remote teams for three years firsthand, used all the solutions out there like hiring recruiters, using self-service marketplaces, bootcamp solutions, talent hiring networks and always faced the problem of having to hire talent quickly and see the issues around trust and transparency,” Romil said.
Outdefine is built on the Solana network. The first phase is launching a marketplace where talent can find opportunities. The hope is that developers such as hiring agencies and training programs will then build services on top of the network and use Outdefine’s data and native token to create richer experiences for talent on the network, Romil said.
“Over a period of time, it’s the community that is going to drive the direction of the token and the roadmap,” he added.
Users of the network are rewarded with tokens to incentivize usage such as referring friends or contributing to the community. On the hiring companies’ side, the team already several partnerships lined up, Sanjay said.
A counter-cyclical play
A decentralized hiring network is particularly relevant as both the crypto and broader tech industry grapples with widespread layoffs in response to a challenging economic environment.
“Outdefine is a counter-cyclical play to the broader market trends and is a real-world application that makes eminent sense,” said Jarrod Dicker, partner at TCG Crypto, in the release.
“We are able to actually help a lot of talent, find opportunities and help them move to web3, which works for when the economy is depressed,” Romil said. “But as the economy starts to boom, we are able to capitalize on the other side by helping developer ecosystems build businesses and helping companies find talent quickly.”
“There’s like a two-sided effect to us, which helps us stay in equilibrium,” he added.
The funds will be used to develop the tokenomics and expand the network.