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Catalyte finishes $27M funding round and acquisition of Surge

(aarrows / Depositphotos.com)

(aarrows / Depositphotos.com)

Baltimore software services company Catalyte completed a $27 million funding round and acquired software development and consulting service company Surge, the company announced this week.

Catalyte provides software services to help prevent tech talent shortages in the United States by using artificial intelligence to identify individuals with the potential for software development based on their “innate potential” and cognitive abilities.

Catalyte’s Series A funding round included investments from Revolution’s Rise of the Rest Fund, Palm Drive Capital, Cross Culture Ventures, Expon Capital and others.

“One of the fundamental ways our economy is going to both remain competitive on the international level and expand opportunities to more Americans is by changing the way we identify talent,” said Steve Case, chairman and CEO of Revolution, in a statement. “Catalyte proved to us that not only can it bring new and underrepresented groups into the fold, it can do so while helping its own clients grow.”

Catalyte plans on using the money raised to help it expand to new cities in 2018, including Salt Lake City and Chicago.

“We plan to use the funding to magnify the impact and grow the company to reach even more talented individuals,” Jacob Hsu, the company’s CEO, said in a statement.

Catalyte also said it can find talent more efficiently because its hiring process does not rely heavily on traditional measures like resumes and college degrees.

“Catalyte is able to solve four of the biggest technology challenges facing companies today,” Hsu said. “We shrink the talent gap by finding great developers from nontraditional backgrounds. Since our employees are selected based on their innate abilities, we remove subjective bias from the hiring process and increase the diversity of our workforce.”

The acquisition of Surge should help with that challenge. The Seattle-area company provides onshore custom web, cloud, mobile, digital and desktop software development and consulting services to clients.

The company will use the combined resources of Catalyte and Surge to create a broader talent pool to help clients find the right person for projects.

 


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