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Joonko’s board of directors said in a statement that CEO Ilit Raz “was found to have engaged in egregious, unethical, and fraudulent conduct, which caused harm to the company and its shareholders.” Joonko raised a $25 million Series B last September, with the help of Target Global and Insight Partners.

Joonko, an Israeli start-up that has created an automated sourcing platform that is entirely dedicated to underrepresented individuals, is on the approach of a shocking closure. The number of the company’s actual customers was significantly different from the amount that its managers had told the investors, according to a board of directors and investor probe. In such reports, the business claimed to have 150 customers, but in reality, there were much fewer.

Ilit Raz, the CEO of the company, and several other senior executives have already resigned, and most of the staff have been summoned in for a hearing before being let go.

The Joonko board said in a statement that “The CEO was found to have engaged in egregious, unethical, and fraudulent conduct, which caused harm to the company and its shareholders.”
Joonko raised $25 million in Series B funding in September, with the help of Insight Partners, Target Global, and preexisting investors including Kapor Capital. At its height, the company, which has raised a total of $38 million, employed about 50 individuals; it is still unknown how many will remain after the significant layoffs.
“Insight does not tolerate, and our investors expect us to take seriously, any findings of misconduct, deceit, or unlawful activity at our firm or any of our portfolio companies,” Insight Partners said in a statement.

Requests for feedback from Ilit Raz and the business went unanswered.
The ecosystem of Joonko’s recruitment solution identifies and suggests pre-qualified candidates from a variety of underrepresented sectors, saving recruiters time in finding, luring, and validating relevant candidates. This ecosystem helps companies achieve their diversity, equity, and inclusion goals. To identify pre-qualified individuals and display them as recommended talent everywhere in the Joonko ecosystem, Joonko establishes connections with partner firms’ applicant tracking systems.
According to prior statements made by Joonko, their automated sourcing technology is used by companies like Adidas, Accenture, American Express, Crocs, PayPal, Northwestern Mutual, and Intuit.

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