A quest to help build winning organisations: why we invested in Teamscope
We’re happy to announce another exciting startup investment — Teamscope. Founded by Alo and Tõnis Arro they are a talent analytics platform that helps organisations build high-performing teams. And by teams we mean really kick ass and in sync teams not just a combination of high-performing individuals.
We are excited to become a part of their impressive investor pool including Skype co-founder and world renowned AI evangelist Jaan Tallinn, Pipedrive co-founders and Black Pearls VC.
Hiring the right executive to your team is difficult. First the qualifications are hard to measure but once you tackle that issue it is absolutely paramount to make sure that the new member aligns with the rest of the squad with personality and culture. You can always go with your gut feeling but if you want to add science to the mix you need something more. Enters Teamscope.
So hiring the right person is difficult but hiring the wrong person will also be costly. First of all, there is a monetary loss that comes with a poor hiring decision — direct cost of executive replacement can be up to a 2-year salary. Equally detrimental can be the damage to the organisation’s morale and the opportunity cost of losing out on a good hire that could have taken the organisation forward.
Traditional tools do very little to help hiring managers make better decisions. Although the space is hot among VC-s and close to $1bn was invested into HR-tech companies in the first quarter of 2020 alone, virtually all HR-tech startups focus on process administration or junior-level, high-volume recruitment. When it comes to executive roles, organisations still rely on traditional assessment providers, which are often too complex to interpret and cumbersome to use in practice. Moreover, existing tools focus on analysing individuals, but great things in business are achieved by high-performing groups, therefore analysing the characteristics and capabilities of individual candidates alone is not enough to make great decisions.
Data-driven hiring decisions
Teamscope helps organisations by giving them tools to hire, onboard and develop fully aligned members to their teams.
They do this using the principles laid out by nobel laureate Daniel Kahneman and other leading behavioral scientists, who state that human intuition, when combined with a data-driven decision-making process, will lead to the best hiring decision.
The platform relies on analysing the personality characteristics, values, and competencies of individuals, and uses proprietary data models to predict how specific people are likely to perform in a specific group setting. The platform also gathers feedback data from every team that they work with, which helps to improve the predictive accuracy of the data model.
This insight is then visualised on an interactive dashboard that is easy to understand and interpret. It is a valuable tool for leaders, executive search professionals, and leadership coaches. With Teamscope these professionals can make better hiring decisions, onboard better aligned team members and to help companies build a culture where squads can perform at their best.
Teamscope clients include several leading executive search firms, private equity companies, and scale ups (H.I. Executive Consultancy, Warburg Pincus, Pipedrive). The next step is to expand their product offering for large enterprise clients. A pilot project with Genpact, one of the largest professional service firms in the world will be the cornerstone of that effort.
Team behind Teamscope
The core team is 8 people with offices in Tallinn and London. The founders, Alo Arro and Tõnis Arro can say that they know each other for over 35 years — Tõnis is Alo’s uncle and the business was actually started after a conversation they had over Christmas dinner. Previously, Tõnis has built the leading executive search and talent consultancy in the Baltics and Alo has built the data analytics and business intelligence team of one of the largest retail and investment companies in the region.
The development team has extensive experience in building large online platforms and enterprise information systems.
Together, the team has a unique combination of long-term industry experience, business acumen, and practical skills in using modern technology and data analytics to help make better business decisions.
The founders are happy to have new investors on board. The final agreements were signed at the peak of the COVID outbreak, but according to the co-founder and CEO Alo Arro, all investors followed through on their initial commitments without any delays.
“I am really glad to have Spring Capital on board. They bring a wealth of experience in tech and entrepreneurship and have been very professional and transparent throughout the whole process. Having such investors on board is invaluable, especially amidst the current situation, so I am really grateful for the support of Spring and our previous investors.” — Teamscope CEO Alo Arro
If you would like to learn more about how Teamscope is used for hiring, onboarding, and developing high-performing leadership teams, book a demo at teamscope.io.