Freelance Marketplace Platform
Freelance Marketplace Platform Fiverr Raises Additional $60M in Financing
Fiverr has now signed up with the most highly moneyed companies in the work intermediation platform (WIP) space. The freelance market platform, established in 2010, announced a $60 million funding round Wednesday led by Square Peg Capital, along with existing investors Bessemer Venture Partners, Accel and Qumra Capital. This is the sixth round of funding in 5 years, bringing the overall personal equity funding to a sensational sum of $110 million.
The company began as an Israel-based startup, and it now has significant workplaces in the U.S. It has actually typically been incorrectly considered as a not-so-serious player in the quick broadening freelance market sector. Certainly this financing round is going to turn some heads and open some eyes to examine exactly what Fiverr has really been about.
We have been in a position to follow Fiverr over the previous few years. In this post, we provide a quick summary of the funding event and current Fiverr developments discussed in the statement. We will follow up next week with a more thorough analysis of Fiverr and its perhaps unexpected significance for services procurement.
In a Nutshell
Because of its low-end rates restrictions on exactly what sellers might charge purchasers for their online deliverables, Fiverr became erroneously believed as a down-market gamer what we might call a type of dollar store for online freelancer tasks. Contradicting that perception, Fiverr states it is forming the future of work by shifting the freelance economy online.
In journalism release, Fiverr describes itself as the world’s most transacted marketplace for digital services, stating, our horizontal marketplace provides nearly any digital service in simply one click. Its buyers can pick from the world’s biggest brochure of pre-packaged services ranging from graphic design to music/video modifying to marketing and copywriting. Fiverr likewise states that Fiverr sellers seeking to make extra money have provided countless top quality Gigs from 100+ categories of services, and across 196 nations, the company stated. In other places, the company specifies that it generates near 1 million digital deals per month.
The current statement focused on the new investment round, and it likewise brought visibility to the official launch of exactly what has actually been an observable, slowly emerging method of moving up-market and supporting/encouraging productized service offerings/packages.
Journalism release discusses that, for the first time, all freelancers on Fiverr will quickly have the ability to set their own rates rather than be needed to start them at $5.
Over the next a number of weeks, Fiverr also will be introducing easy-to-understand Gig Packages throughout several prices tiers, which will simplify the method freelancers or Fiverr sellers price and package services, it said in the press release. Fiverr will continue to roll out the bundled Gig Packages and other brand-new value-added services and during 2016.
Splitting the Nut.
It’s clear from the statement that Fiverr is now taking the wraps off of its longer-range method, which when you go back and take a look at it begins to seem quite like a classical Clayton Christensen interruption play: going into at the low end of the marketplace, developing an ingenious model and moving up.
Coming out swinging, Fiverr s CEO, Micha Kaufman, stated, this financing from brand-new and existing partners will assist expand our geographic footprint, compete for brand-new talent, add innovative new features and more strongly grow our company, potentially by getting other businesses in our space. (Emphasis added.).
And in case there is any doubt about a long-lasting vision and method at work over the past years at Fiverr, it’s fascinating to go back to 2012, when Kaufman told TechCrunch, our vision is to turn Fiverr into the eBay for the service economy. Kaufman wasn’t pulling any punches at that time, and now we can see that investors are not just brought in by the normal components of a gifted team and capability to carry out but likewise by exactly what seems clear vision and compelling strategy.
To puts it simply, regardless of appearances, Fiverr is not a black swan.
Perhaps, surprisingly to some, Fiverr is now entering focus as a significant, ingenious gamer in the freelancer WIP space. In this context, we will be returning with a research study short providing a more extensive analysis of not only the Fiverr strategy but, perhaps more importantly, how what Fiverr is doing is straight pertinent to services procurement.