Yardstik, a Minneapolis-based startup, has raised $30 million to monitor employees after they’re hired, addressing gaps left by traditional background checks that run only once.
One Check Isn’t Enough
Most companies run background checks only at hiring. After that, they have little visibility into changes in an employee’s status—whether a license expires, a criminal record appears, or fraud emerges. According to a 2026 report, workplace fraud often goes unnoticed for nearly a year, and if no one reports it, the company may never find out.
AI has made deception easier. Fake identities, forged documents, and synthetic credentials can slip through initial screenings. “The legacy background check industry was built around a single moment in time, even though workforce risk changes every day,” said Yardstik CEO Andrew Johnson. For large employers with thousands of workers across states or countries, that single check leaves blind spots.
$30 Million to Build a “Human Trust Platform”
The Series B funding round was led by Harbert Growth Partners, with participation from existing investors Rally Ventures, MissionOG, Crosslink Capital, Grotech Ventures, and Great North Ventures. This brings Yardstik’s total funding to $65 million.
The company serves over 1,000 enterprise clients and positions itself as a “Human Trust Platform.” Unlike traditional background check services, Yardstik monitors risk continuously. The new funding will expand three areas:
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- Fraud prevention, including tools like Detect AI™ to flag synthetic identities, payment fraud, and Social Security number anomalies before hiring.
- Daily monitoring of driving records, government ban lists, and criminal databases. If an employee is arrested or added to a sex offender registry, HR receives an immediate alert.
- Credential management, with automated alerts for expiring licenses, insurance, or certifications—critical for healthcare, trucking, and other regulated industries.
The platform integrates with existing HR systems via API, avoiding workflow disruptions.
Yardstik’s approach reflects a shift in how companies view workforce risk. Remote work, gig platforms, and AI-generated applications have made static background checks unreliable. People commit crimes after hiring. Fraudsters exploit gaps in verification. The company’s bet is that trust degrades without continuous monitoring.
With $65 million raised and a growing client base, Yardstik aims to become the infrastructure layer for workforce trust. The funding will expand engineering and go-to-market teams, with plans to move beyond North America into the UK and continental Europe.
Johnson said the goal is to make “fraud signals before a check runs, monitoring after someone is hired, and real-time credential visibility” standard—not a premium add-on.
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