PayScale lands $7 million for online salary service

PayScale, the Seattle online salary comparison site, has scored an additional $7 million in venture capital financing in a deal led by SAP Ventures.

Past backers of the company — including Fluke Venture Partners, Madrona Venture Group, Montlake Capital and Trinity Ventures — also participated. The new capital infusion will go to sales and marketing efforts and new product development.

The 75-person company, which launched in 2002, claims to own the largest database of online employee salary data in the world. It has now raised about $32 million to date.

“PayScale has had a fantastic 18 months,” said CEO Mike Metzger in a release. “We have more than doubled our business subscription customers, significantly expanded our selling capacity and grown our dataset.”

The company, which boasts more than 29 million unique career profiles, has a close alliance with LinkedIn. In December 2010, the companies entered into a partnership in which PayScale’s job, location and industry-specific compensation data was integrated with LinkedIn search results.

PayScale also has been able to grow its base of business customers which use the company’s online tools for human resources decisions. The company’s Insight product is now used by about 2,300 business subscribers, an increase of over 60 percent from a year ago.

Customers, which include Signature Healthcare and GE Energy, use the real-time data to set up appropriate compensation strategies.