Information on the Target

Arctic Shores, a psychometric assessment provider based in Manchester, has emerged as a leader in assessing potential and soft skills since its inception in 2014 by co-founders Robert Newry and Safe Hammad. With a focus on employing cognitive neuroscience, the company seeks to uncover the true potential of candidates, enhancing workforce diversity and quality in hiring processes. Arctic Shores has established itself by securing notable clients including Vitality, PwC, and Siemens, having assessed over three million candidates globally.

In a world where many organizations are grappling with a significant skills crisis, Arctic Shores offers a progressive solution designed to help companies expand their talent pools and improve hiring efficiencies. By moving beyond traditional CV filtering and outdated selection criteria, the company supports employers in discovering high-quality candidates who may otherwise be overlooked.

Industry Overview in the Target's Country

The recruitment landscape in the UK is experiencing substantial changes driven by technological advancements, shifting workforce dynamics, and evolving employer needs. Companies are facing increased pressure to attract talent due to a skills shortage in specific sectors, further exacerbated by the impending retirement of experienced workers. This scenario has highlighted the necessity for a more nuanced approach to hiring that takes potential and adaptability into consideration.

Digitization is reshaping the UK labor market, creating new roles that often require skills not present in traditional job descriptions. Employers are realizing that past practices, such as relying heavily on CV qualifications, are inadequate for assessing the capabilities necessary for the future. Leading organizations are adopting innovative assessment methods that reveal candidates' true abilities, thereby becoming more competitive in their recruitment processes.

This transformation in the hiring landscape has prompted a shift towards valuing soft skills as a core component in recruitment strategies. Employers are increasingly recognizing that soft skills—such as communication, teamwork, and problem-solving—are essential to fostering a collaborative and effective workplace environment. As a result, the demand for tools and platforms that facilitate soft skills assessment, like those offered by Arctic Shores, is on the rise.

Consequently, the UK market is poised for growth in psychometric assessments focused on soft skills, with organizations increasingly seeking innovative solutions to attract diverse talent and meet their future workforce needs. This evolving industry landscape presents a favorable environment for Arctic Shores to expand its influence and accelerate its international operations.

The Rationale Behind the Deal

The recent £5.75m Series B investment in Arctic Shores aims to bolster the company's development of its soft-skills assessment tools and support its international expansion, particularly across Europe. As employers increasingly adopt a soft skills-centric hiring approach, Arctic Shores is positioned to enhance its platform and reach a broader client base.

This influx of capital is expected to drive the launch of Arctic Shores' innovative self-configure assessment platform while also enabling the company to solidify its presence in key European markets. The investment aligns with the growing recognition of the importance of soft skills in recruitment strategies, thus promising to elevate Arctic Shores as a leader in this vital sector.

Information About the Investor

The transaction was led by two venture capital firms: Praetura Ventures, a Manchester-based firm, and Calculus Capital from London. Praetura Ventures specializes in providing not only financial backing but also strategic support to scale ambitious businesses within the North of England. Helen Verwoert, an operational partner at Praetura and former chief people officer at Dr. Martens, will join the Arctic Shores board.

Calculus Capital, known for its focus on investing in innovative growth-stage companies, sees great potential in Arctic Shores due to its unique approach to recruitment and impressive client roster across 40 countries. Co-Head of Investments Alexander Crawford will also join the board, bringing valuable insights and experience to support the company's growth trajectory.

View of Dealert

The recent investment in Arctic Shores is a strategic move that reflects the shifting dynamics within the recruitment industry. With its innovative approach to assessing candidates based on potential rather than traditional qualifications, Arctic Shores is well-positioned to address the demands of a modern workforce. Expert opinions suggest that the company’s focus on soft skills will resonate strongly with employers looking to enhance their hiring practices and improve workforce quality.

Furthermore, the market for soft skills assessments is only expected to grow, as organizations continue to seek ways to diversify their talent pools and adapt to the challenges of a rapidly digitizing economy. Arctic Shores’ commitment to helping clients adopt unbiased assessment methods aligns with current trends and positions it as a forward-thinking leader in the recruitment space.

Investors and market analysts believe that the combined expertise of Praetura Ventures and Calculus Capital will enhance Arctic Shores' capability to scale effectively within Europe. The entry of seasoned professionals onto the company's board is anticipated to provide valuable guidance as Arctic Shores expands its reach and capabilities.

In conclusion, Arctic Shores represents a promising investment opportunity given its strategic focus, innovative product offerings, and the growing demand for soft skills assessments in the labor market. This deal stands to significantly enhance the company's growth potential and establish it as a key player in the future of recruitment.

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