Lystable, maker of software that helps companies manage their freelance workers, closed its Series A financing with $11 million raised. Peter Thiel‘s Valar Ventures and Goldcrest Capital led the round, with participation by Spring Partners. Founded in the UK, Lystable has reincorporated as a US company, with plans to expand its San Francisco office.
Lystable, the enterprise software start-up that enables organizations to manage their expanding freelance and vendor workforce, has closed its Series A financing, securing $11 million in a round led by Peter Thiel’s Valar Ventures and Goldcrest Capital with participation from Spring Partners.
In connection with the financing, Lystable, which was founded in the UK by Google designer Peter Johnston, has reincorporated as a US company. The funding will be used to expand quickly into the US, including by growing the company’s San Francisco based office to 35 people by the end of the year.
Entering a market dominated by much older software companies, Lystable has created software to help businesses manage relationships with an increasingly flexible workforce of freelancers, independent contractors and vendors. Lystable’s clients include Google and The Economist with recent additions including Airbnb, MTV, and CNBC. It has over 60 enterprise clients managing over 20,000 contractors and vendors on a weekly basis.
Peter Johnston said: “This phase is now one of growth. We have figured out a lot of nuances and worked to make our model repeatable and scalable with large companies. Securing this funding allows us to scale out sales and marketing and bring in a number of key senior hires on product and engineering.”
James Fitzgerald of Valar Ventures and Leila Zegna of Spring Partners have joined Lystable’s board of directors, and Adam Ross of Goldcrest Capital has joined as a board observer.
Adam Ross, partner at Goldcrest Capital said: “Lystable is one of our top priorities this year. Peter Johnston is an extraordinary entrepreneur who has led the company to exceptional growth in a short period of time. We are excited to leverage our SaaS experience and network to assist Lystable in building a massive business.”
James Fitzgerald, a founding partner at Valar Ventures, said: “Legacy software is not equipped to deal with the growing freelancer economy. Lystable’s product solves a real pain point for enterprises who are managing an increasing number of freelancers and contractors. Their product is in another league compared with the incumbents.”
Leila Zegna, co-founder and partner at Spring Partners, said: “We’ve been involved in Lystable’s growth since the beginning and we are excited to continue to support the company through this next exciting phase. We believe that the future of work is a flexible one, and we’re confident that Lystable will be leading the charge towards enabling that future.”
It has been estimated that there are currently 53 million people working as freelancers and contractors in the US alone, a figure which is expected to rise rapidly over the next decade. The number of independent professionals in the EU rose from 7.7 million to 9.6 million between 2008 and 2015.