What's the founding story behind NewCraft?
Before NewCraft I worked as a teacher and career coach.
One day I was helping a student job search and it sucked. Without a connect, this student and many others have zero chance of finding meaningful paid work. Labor markets live offline, candidates and companies rely on referrals.
I put in my resignation a week later, pulled $15K from my IRA and started building NewCraft.
NewCraft is a real-time feed of pending interviews, job offers and acquihires happening across the tech labor market. Candidates trending in the feed get multiple competing offers from top companies.
In what ways has going through YC helped you get from where you were initially, to where you are now, and going in the future?
YC supplies us with a constant network of great companies that are hiring rapidly and people who are transitioning from founders to become top 20% candidates in the labor market.
This helped us go from 0 to 10 customers in the early days and continues to be a reliable channel for growth. YC partners are also very supportive post-batch.
What do you believe about labor markets, and how has that evolved over time?
Today, it is impossible to clearly identify thousands of qualified, in-market candidates in real-time.
Labor markets don't have enough nodes connecting people to opportunity. Think of labor markets as Twitter but before hashtags, there's no way to programmatically surface the most relevant candidates and opportunities.
Even after countless phone screens, interviews, and $20k in recruiting cost per candidate companies only close 30% of candidates offered.
Hiring remains the single greatest challenge for every company.
Candidates face similar challenges.
Job applications are largely a formality so most candidates start by running through their contacts, reaching out to people they haven't seen in years for coffee meetings, completing 2-hour phone screens for every company, losing entire days to on-site interviews and being so exhausted at the end they skim over important details in the first offer.
The world needs a labor market powered by the internet. Imagine labor supply and demand trending in real-time. This is what we do at NewCraft.
What do you envision NewCraft's sustainable competitive advantage being?
There a few but the most obvious is being the system of record for interviews and offers across the labor market. This creates a huge data advantage.
Why is right now the perfect time for NewCraft to exist in the world?
Competition for talent more fierce
Labor has always had leverage but now (from sports to engineering) labor has figured out how to use it via free-market principles. This is an underrated shift.
Pareto's distribution is quietly happening in the labor market.
Just as there's a top 20% that has aggregated most of the world's wealth, there will be a top 20% to eat most of the world's work.
52% of fortune 500 companies have disappeared since 2000 along with millions of small businesses, all replaced by tech startups who almost exclusively compete for top 20% talent.
The best-case equation for the future of work is 20% of people in the labor market create 80% of the jobs for everyone else.
In practice, this means companies hiring top candidates have to also hire their teams. For example, Zoom hires a top senior engineer, their friend who is a top designer and 3 entry-level engineers for them to mentor as a package.
Candidates are harder to evaluate
When labor was repetitive, talent was easy to identify, most corporations simply wanted obedience. Now that work is more creative and dynamic, companies have a hard time accurately defining what type of candidate they are looking for.
Even when defined, requirements change fast and it’s nearly-impossible to predict how well a candidate will perform without meeting them on-site. Everything before an on-site is just guessing. Now is the best time to make on-site data shareable.
Candidates are smarter about compensation
With the rise of tools like Glassdoor, Compound and Blind candidates have a better sense of what fair compensation looks like. Companies that start with low-ball offers don’t stand a chance.
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