This 26 y/o 10x'd Revenue Doing the Opposite of Every AI Startup | Paraform, John Kim
John Kim's AI startup has paid out over $50 million to human recruiters. While every other hiring platform races to replace them, Paraform bet the opposite d...
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Intro
- 00:00recruiting. It's the most important
- 00:02thing you should be doing as a leader,
- 00:04as a company, yet it's so inefficient.
- 00:06And I heard from a recruiter that well
- 00:08respected in the industry that 5 years
- 00:10ago, if you reach out to 500 to 700
- 00:13engineers, you could probably make a
- 00:15hire as a recruiter. 2 years ago, that
- 00:17number jumped to 1500 engineers to make
- 00:20one hire, which was already so difficult
- 00:22to manage. With AI recently, it's 5,000.
- 00:25So essentially, AI is actually making
- 00:27hiring a lot more noisier. It's bogging
- 00:29us all down. If you get reached out
- 00:30about thousand opportunities, it's not
- 00:32special anymore. Meaning comes from
- 00:35scarcity. So I think even more in the
- 00:37future, if it takes 5,000 emails to get
- 00:39one engineer hired, trust,
- 00:42relationships, and access, these things
- 00:44become more and more important. So I
- 00:46think that was our deliberate decision
- 00:47to work with recruiters rather than
- 00:49replacing them. Yeah, we paid out 50
- 00:51million soon to our recruiters. Hey
The AI Startup That Pays Humans $50M
- 00:55guys, I'm John Kim, one of the founders
- 00:57and CEO of Parform. We uh raised 65
- 00:59million uh to date and in 2025 we uh
- 01:0210xed our revenue. We work with
- 01:04customers from early stage startups all
- 01:06the way to public companies uh like
- 01:08Palunteer, Rippling, Dakagon, A Bridge.
- 01:11Parapform is a a hiring platform that
- 01:13makes hiring exceptional talent as easy
- 01:15as pressing a button.
How to Find What Truly Matters in Your Life
- 01:26Ever since the age of four, I sort of
- 01:28moved around a lot uh because of my
- 01:30dad's job. So yeah, I lived in
- 01:32Singapore, Australia, LA, uh and Korea
- 01:34as well. When I was 11, 12. In
- 01:37Australia, like entrepreneurship and
- 01:39going out on your own is not very
- 01:40celebrated. You're sort of told to stay
- 01:42in your lane, like do what's sort of uh
- 01:44comfortable. My grandpa encouraged me uh
- 01:47to go to law school. He went to law
- 01:49school and he really wanted to be a
- 01:50lawyer but uh he had to sort of take a
- 01:54different path because of uh his family.
- 01:56And so growing up I always thought you
- 01:58know that was the goal and I I did but
- 02:00um there was definitely a moment uh that
- 02:02I remember that I um you know started uh
- 02:05living my life and treating my time and
- 02:07and what I'm going to do very very
- 02:09differently. I think I was 18 back then.
The Hospital Visit that Changed Everything
- 02:12I like was very sick for like three
- 02:14months and so um you know I went to like
- 02:16the hospital to get something checked up
- 02:17in Korea. I walked in and uh I was the
- 02:21only uh young person there. I remember a
- 02:24lot of people there were quite old like
- 02:26maybe in their 80s and '9s so it felt
- 02:28very out of place. I obviously didn't
- 02:30really think that anything could go
- 02:31wrong. I just thought like oh I'm young.
- 02:33I'm you know I'm invincible. That type
- 02:36of mindset. And when the results came
- 02:38out, the doctor sort of said like, "Hey,
- 02:40by the way, there's like something in
- 02:41your lungs and um you know, it could be
- 02:43something really bad." And I think when
- 02:46I heard that, everything changed. I
- 02:48started thinking, "Oh, well, in the most
- 02:50extreme sense, if I have only 1 year or
- 02:523 years left to live, uh what am I going
- 02:54to do? What am I going to do
- 02:55differently? How am I going to spend
- 02:56time?" And that actually really changed,
- 02:59I think, all of my brain chemistry and
Living on a 3-Year Timeline
- 03:01what I decide to do. back of my mind, I
- 03:04always knew that I wanted to start and
- 03:06build my own company. When it comes to
- 03:08thinking that it's a big decision to
- 03:10start a company, it's what I always
- 03:11wanted to do, what I wanted to dedicate
- 03:14my life to. I thought that, okay, when
- 03:16I'm like 75, 85 years old, that's like
- 03:19my timeline. So, I had, you know, 65
- 03:21years to figure something out, right?
- 03:23So, if you think about it in your 65
- 03:25year timeline, then all of a sudden you
- 03:27push things back, right? If you want to
- 03:29do something, you push it back. If you
- 03:30want to try achieve a goal, you think
- 03:32you have 10 years, 20 years. But um if
- 03:35you think about that 65 years in
- 03:36three-year terms, you are sort of forced
- 03:39to prioritize and then think about what
- 03:40you really want. I think maybe that
- 03:43event made me think, okay, I have 3
- 03:45years to make that happen, so let's do
- 03:46it now. And I think it added that
- 03:48urgency to start for the next 3 years.
- 03:50Every 6 months, I had to get it checked
- 03:52up to see if it's anything bad. So there
- 03:55was this sort of anticipation every 6
- 03:57months of like what's going to happen.
- 03:58And turns out it was uh sort of like a
- 04:00false alarm. But I look back to that
- 04:02moment and you know although it felt
- 04:04pretty terrible. Maybe it was actually a
- 04:06blessing in disguise.
AI Moves Fast, It Breaks Trust
- 04:12I was actually on a business trip to New
- 04:14York and that's when I met my co-founder
- 04:16Jeff at Parapform. So I went around
- 04:18asking uh other people around us uh
- 04:20which were mostly founders asking them
- 04:22what is your number one problem right
- 04:24now and how much would you pay us to
- 04:25solve it? Uh and almost all of them said
- 04:27uh hiring and they said they would pay
- 04:29us 40k per hire. So we were like hey
- 04:32maybe if we make five hires each this
- 04:33year you know that's like maybe
- 04:35equivalent of like a salary. So maybe
- 04:37this is a good business to start. So we
- 04:38set out on a journey to make five hires
- 04:40each. So the first thing we did was
- 04:42actually become recruiters ourselves.
The Two Pivots That Failed
- 04:44What we started doing was like we
- 04:45scraped the web. We looked at, you know,
- 04:47your Twitter profile, your GitHub
- 04:48profile, like everything really online
- 04:50about you and we sort of try to combine
- 04:53that with like your professional
- 04:54experience, like your LinkedIn, your
- 04:55resume. And then, um, you know, 3
- 04:58months, 4 months in, we were not even
- 04:59close to making five hires, let alone
- 05:01one. And so, we were like, okay, like
- 05:03clearly this is like super inefficient.
- 05:05What should we do? While we were
- 05:07exploring the problem space, we realized
- 05:09like it's actually like trust, access,
- 05:11and relationships. I could find a great
- 05:14engineer at Facebook or OpenAI right
- 05:16now, but doesn't mean that person will
- 05:19respond to me or know me or even
- 05:21interested in the opportunity, right?
- 05:23Whereas like maybe if your friend
- 05:24reached out, you might consider the
- 05:26opportunity or someone you respect,
- 05:28right? So the next idea we pivoted to
- 05:30was a referral marketplace, referral
- 05:32platform where essentially our startup
- 05:35customers could post bounties, referral
- 05:36bounties like 5 10k for the engineers
- 05:39they were trying to hire and turn anyone
- 05:41in the world to your recruiter. But
- 05:42there was not much retention. Um I think
- 05:44we overestimated how many people each
- 05:47person knows, how well connected someone
- 05:49is, and um it wasn't like their main
- 05:51profession and job. So they um didn't
- 05:54come back to the platform. You release
- 05:56it to the market and no one wants it. I
- 05:58think that you know it wasn't great. We
- 06:00were sort of hitting a dead end for
- 06:01three four months. Nothing was happening
- 06:03and then um one user group started uh
- 06:06using it a lot. We saw that uh user
- 06:09group growing and these were like
- 06:11independent recruiters, recruiting
- 06:12agencies, head hunters and it made so
- 06:14much sense. They're very well connected
- 06:16compared to most people. Uh it's their
- 06:18job. It's their profession. They're
- 06:19financially incentivized. So they
- 06:20started sort of um coming back and using
- 06:23the platform continuously. And I think
- 06:24that's when we realized, oh, we, you
- 06:26know, built something people want and
- 06:28then it scaled to where Parapform is
- 06:30today. We're really focused on how do we
- 06:32match the right person to the right
- 06:34opportunity. That's done not by giving
- 06:36them a thousand options and telling them
- 06:38to choose, but giving them, you know,
- 06:40three or four that actually really match
- 06:42what they're looking for. When you don't
- 06:44use AI correctly, I think it loses
- 06:47meaning and makes things not special, if
- 06:50you will. I think the word special is
- 06:52basically directly correlated to
- 06:55scarcity and directly correlated to
- 06:57quality over quantity.
- 07:00I think maybe AI can make you know 70
- 07:0280% of what recruiters do and automate
- 07:05that. But I think it's like the last
- 07:07sort of 20% like the human touch I think
- 07:09is like very very important. Meaning
- 07:11comes from scarcity.
Everyone Has a Night They Want to Give Up
- 07:18So, uh, at the time, um, I was actually
- 07:20in Australia trying to get my visa to
- 07:22come back to the US. The time zone is
- 07:24obviously really difficult. I remember
- 07:26my routine was sort of waking up at
- 07:2911:00 p.m. and then um, working
- 07:31throughout the night to overlap with San
- 07:33Francisco time and then going to sleep
- 07:34at like maybe lunch or after lunch and
- 07:36then repeat. And we didn't even have an
- 07:38office. So, I used to go to my old uh,
- 07:40college uh, library to work there um,
- 07:43just in a booth. So when people saw me,
- 07:45they probably thought I was just like a
- 07:47student. It was like a weird feeling
- 07:48because it was a school that I dropped
- 07:50out of and I'm like in the library um
- 07:52trying to build my company. And I
- 07:53remember the way we got customers
- 07:55because we had no brand name was just
- 07:57pure hustle like just going door to door
- 08:00uh emailing people one by one. No like
- 08:02email automation tool or anything like
- 08:03that. Just reaching out. And so each
- 08:07customer was very very valuable. Like uh
- 08:09when they said yes, I want to try it
- 08:10out, it meant the world to us. And there
The First Big Customer Who Almost Dropped Us
- 08:12was this one customer uh called
- 08:14Hightouch. Uh they're like a AI
- 08:16marketing platform. I remember they were
- 08:18the first sort of uh company that it
- 08:20wasn't our friend or some connection. It
- 08:22was like a company that through our own
- 08:25effort and hustle we got. They were
- 08:27hiring like a director of engineering
- 08:29which is like a very important hire. And
- 08:31we felt very grateful that they trusted
- 08:33us to do such an important job for them.
- 08:35And so we got started. But um I remember
- 08:39like it was like 3:00 am at the library
- 08:41over and over again every day trying to
- 08:42make it work for that customer. One of
- 08:45the recruiters messaged us saying like,
- 08:46"Hey, we haven't been impressed with the
- 08:48quality of candidates uh and the
- 08:50experience. If you guys don't turn this
- 08:52around in the next 10 days, we we can't
- 08:53be a customer anymore." In the middle of
Visa Rejected, Company Almost Dies
- 08:55that, I heard my visa got rejected.
- 08:57Actually, most people get it approved on
- 08:59the spot, but uh for some reason, mine
- 09:02didn't get approved for the first time.
- 09:03It was definitely mental breakdown, not
- 09:06being productive, all these struggles.
- 09:08So, I couldn't fully focus um because
- 09:10it's almost like a company killing
- 09:11event. What failing a visa interview
- 09:13actually means is never being able to
- 09:15come back to the US. Maybe for some
- 09:17people it's just like, oh, let's try
- 09:18again. But for me, there was so much at
- 09:20stake. It was everything I built for,
- 09:22all the work I put in sort of going to
- 09:23nothing. And then I had responsibility
- 09:25to my co-founder as well. And uh I
- 09:27couldn't tell him the news because it's
- 09:29hard thing after hard thing after hard
- 09:30thing. I think the two things that kept
- 09:32me going was one like this
- 09:34responsibility this like if I don't do
- 09:36this this company will die you know I
- 09:38have this responsibility to make it work
- 09:40there's no other option than surviving
- 09:42and continuing so that was one the other
- 09:44one was actually a lot of like things
- 09:46were going on in my personal life as
- 09:47well like um friends and family and then
- 09:50I actually realized that oh other people
- 09:52have like pretty difficult problems too
- 09:54in life I then reflected whatever I'm
- 09:56going through right now at the time was
- 09:59something that I inflicted upon myself
- 10:01like I chose to start this company. I
- 10:03could have not done that. I chose to
- 10:06move here to the US and be based here.
- 10:08You know, I chose to apply for this
- 10:10visa. Like, you know, it's all like
- 10:11something that I chose to do. And there
- 10:13were a lot of people in my life who had
- 10:15problems and they didn't choose that. It
- 10:17wasn't within their control. And so, I
- 10:19think that was actually in a weird way
- 10:22encouraging as well. We were just like,
- 10:23oh, like maybe this is actually not that
- 10:25big of a deal. Like, you know, at the
- 10:26end of the day, I I wanted to try this.
- 10:28Um and so that gave me the energy back
- 10:32uh to sort of stand back up and and
Don't Find a Better Problem, Understand Your Problem Deeper
- 10:34continue to go. Yeah.
- 10:39You know, it turns out the visa thing
- 10:40was like some process issues, so it's
- 10:42all fine now. We actually ended up
- 10:43making a hire for Hightouch for the
- 10:46director of engineering. Hightouch told
- 10:48us that that hire took like 18 months.
- 10:50That role was open for 18 months. They
- 10:52tried everything out there. They tried
- 10:54recruiting agencies, other tools, job
- 10:56boards, and just nothing worked. And to
- 10:59do that within a month and a half with
- 11:01our product gave us a lot of conviction
- 11:04that this is going to work. And I think
- 11:06our customer actually saw that too. And
- 11:08so they reached out to one of their
- 11:10investor connections and said, "Hey,
- 11:11like what these guys are building, I've
- 11:13tried so many recruiting products in the
- 11:14past. I'm obsessed with this problem and
- 11:17none of it worked. Uh, but this is
- 11:18different. This is special." So he
- 11:20introduced us to uh our seed round
- 11:22investors. I remember my co-founder and
- 11:24I the next morning surprised and um all
- 11:27uh happy sort of like biking to their
- 11:30office and we presented for one hour
- 11:32just like our product. There was no
- 11:33pitch deck. We didn't even prepare for
- 11:35fundraising. We didn't even think we
- 11:36were fundraising. Actually, we just
- 11:38thought we were meeting them and they
- 11:39texted us saying like, "Hey, do you guys
- 11:40want to grab drinks at at 5:00 p.m.
- 11:42tonight?" And we were like, "Okay." And
- 11:44then we went and they just said, "Hey,
- 11:47like we really love what you're doing. I
- 11:48think you guys are doing something
- 11:49special." Uh so they gave us a term
Dig Deeper Until You Hit the Root Cause
- 11:50sheet and let our seed round uh that
- 11:52same day. I actually my analogy that I
- 11:54would give is uh going deeper and deeper
- 11:56and deeper like you're not going deep
- 11:58enough. You could at the surface just
- 12:00say hiring is very difficult but
- 12:02actually I think we understood the
- 12:04problem at a very high level and then
- 12:06did something to solve that. It's very
- 12:08easy to go hey like doing XYZ is
- 12:10difficult so let's go solve it but
- 12:12actually why is it difficult? Talk to
- 12:14users about it. You know what they do
- 12:15makes the problem inefficient or
- 12:17difficult. And I think that was the
- 12:19mistake we made first round and then
- 12:21like the subsequent attempts we dig
- 12:23deeper and deeper and deeper into the
- 12:25problem until we actually found the the
- 12:27root cause and I think that's when
- 12:29things started clicking. I see a lot of
- 12:31um people when they start a business or
- 12:33a company where they have this one idea
- 12:36they try it out for a little bit and
- 12:37they go ah actually it's not really
- 12:39working so try something again try
- 12:40something again. It actually takes like
- 12:42a lot more energy than most people think
- 12:44to like keep switching. Instead, what we
- 12:46did was we had a lot of conviction in
- 12:48the problem space. 110% conviction that
- 12:52this is the problem we need to work on.
- 12:54If you think you're going deep, you're
- 12:55probably still not deep enough. And so
- 12:57encouraging them to do that. Yeah.
Advice to Myself at 3AM in That Library
- 13:01If you could go back and sit across from
- 13:03the virgin of you who was in the library
- 13:05at 3:00 a.m. in Australia, what would
- 13:08you tell him?
- 13:09I would tell him to keep doing what
- 13:11you're doing. at the time it's hard to
- 13:13imagine everything we've achieved and
- 13:15everything that we will achieve uh in
- 13:16the future have that same conviction and
- 13:19I think that's kind of like what I still
- 13:20tell myself maybe like if I look back 5
- 13:23years 10 years 20 years from now and
- 13:25look back to this moment maybe that
- 13:27might feel like the 3 a.m. every
- 13:28situation again. So I think keep going
- 13:31uh have conviction. Yeah.