BountyJobs fundingBountyJobs is filling an interesting need in the executive search space. The company doesn’t connect C-suite employees to eager HR recruiters or headhunters; rather, it hooks up qualified headhunters with corporate recruiters.

It’s a tiny niche of human resources, but BountyJobs says its clients get better, more efficient communication with executive headhunters by using the BountyJobs web app, which saves them from strings of long phone calls.

The idea is interesting enough that it garnered the startup a $5 million round from top-notch Silicon Valley investors.

The new funding will allow BountyJobs to grow their software and services and thus to increase their client base by siphoning off companies that currently use search agencies to find executive talent.

The startup can boast of being one out of just seven HR companies in this year’s Inc. 500, which ranks the nations fastest-growing privately held companies.

“BountyJobs was founded on two beliefs: a belief in the power of headhunters to fill critical roles, and a belief in the power of an online marketplace with centralized administration to take the hassles out of managing jobs sent to the headhunting channel,” said the company’s CEO Mike Hard in a statement.

BountyJobs’ marketplace includes a database of around 10,000 headhunters. The headhunters can read employers’ job descriptions and finders’ fees. Specialized headhunters can ask the company for permission to work on each hire; employers can review each headhunter’s performance and engage a number of headhunters who compete to find the best hire in the shortest amount of time.

The round of funding was led by Greylock Partners, with the London offices of Accel Partners and Michigan-based RPM Ventures also increasing their investment. Previous investments in 2008 totalled $15.5; this is the startup’s third institutional round.

“Despite fragmentation and inefficiency in the contingent search market, companies still spend billions of dollars each year on headhunters in the US”, said Dave Strohm, a partner at Greylock. “By giving companies a free, streamlined way to find and hire candidates through specialized headhunters, BountyJobs is transforming a major sector of the recruiting market”.