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Job Openings Can Predict Money Raisings

A spurt in job openings can be a sign a company will shortly be raising money, new data shows.

The Information sifted through job-opening estimates on dozens of companies collated by research firm Mattermark. Matching that with fund-raising data compiled by DataFox showed a clear pattern where companies started looking to increase their staff either in weeks leading up to or shortly after fund-raisings.

It’s to be expected that companies would hire more people after raising money. More surprising is the incidence of job openings spiking up before fundings are announced, something that Mattermark started noticing a year ago, according to co-founder Andy Sparks. “They kind of know the money’s coming and they start to work and operate as if the money’s in,” he said.

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The Honest Company, which sells baby products and other household goods, grew from 58 employees in July, 2013, to 171 in July 2014. It shouldn’t have been a surprise that the company needed a $70 million infusion of capital in August. The company has since expanded to 273 employees while job openings spiked earlier this year and remain higher than where they were for the past year.

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