Union Square Ventures has led a $20 million growth investment in Work Market, which provides software-as-a-service for companies to help manage and pay freelance and independent contractors from a single platform. Other investors in the funding include Spark Capital, SoftBank Capital, Industry Ventures and Silicon Valley Bank.
Work Market, the SaaS solution that helps companies find, engage, manage and pay their freelance and independent contractor workforce from a single platform, today announced that it has raised $20 million in growth capital. The investment was led by Union Square Ventures, with participation by Spark Capital, SoftBank Capital, Industry Ventures and Silicon Valley Bank.
“Union Square Ventures invests in pioneering companies that show the potential to truly disrupt the status quo; we see tremendous opportunity for Work Market to transform the way enterprises leverage the on-demand labor economy,” said Fred Wilson, co-founder of Union Square Ventures and a member of Work Market’s board of directors. “With new CEO Stephen DeWitt at the helm, the company is in prime position to drive rapid growth and further differentiate itself as the top freelance worker management platform on the market.”
The number of freelance workers is projected to outgrow the number of full-time workers by 2020. Work Market closes the gap between companies and freelancers, giving employers access to the qualified talent they need to advance their goals and the freelance labor force better tools with which to connect with work. As a result, since welcoming its first customer in 2011, Work Market has grown more than 125% annually.
“Businesses of all sizes are grappling with the need to identify and implement freelance management systems and Work Market has the solution,” said Stephen DeWitt, CEO of Work Market. “This round of funding will allow us to accelerate our investment in R&D and go to market capabilities. It will also support the expansion of the Work Market marketplace and help us grow the community.”
“As attitudes toward work evolve and more individuals demand greater control over how they work, the need for an effective solution to manage this changing landscape is clear,” said Jordan Levy, General Partner of SoftBank Capital. “Work Market remains ahead of the curve of this ongoing labor evolution, recognizing the need for a new approach and delivering a robust, end-to-end solution to solve those challenges. Softbank is pleased to partner with this innovative company and ensure it remains the industry leader in freelance workforce management.”
“As one of the original investors in Work Market, we recognized the company’s promise in transforming the labor market,” said Mo Koyfman, General Partner of Spark Capital. “With its cutting-edge freelance management platform, Work Market is carrying out that mission and defining a new category in the industry. As the company continues its rapid growth trajectory and brings new innovations to market, we are eager to support its expansion and ongoing success.”
“We are excited to be joining the investor group in support of Work Market,” said Hans Swildens, CEO and Founder of Industry Ventures. “We have a great deal of passion in and understanding of the labor transformation that is rolling across the enterprise. Work Market has done a great job in bringing a critical solution to market, and we look forward to helping them expand their reach in the years ahead.”
“Silicon Valley Bank is excited to be partnering with Work Market, providing a debt facility and helping this innovative company accelerate its growth,” said Bonnie Ryan, Director of Silicon Valley Bank in New York. “As the labor market continues to transform, Work Market is on the forefront with its freelance worker platform, bringing a new approach to collaboration between employers and workers.”
About Union Square Ventures
Union Square Ventures is a venture capital firm based in New York City. We are a small collegial partnership that manages $450,000,000 across three funds. Our portfolio companies create services that have the potential to fundamentally transform important markets http://usv.com.
About Spark Capital
Spark Capital is a venture capital firm that partners with exceptional entrepreneurs seeking to build disruptive, world-changing companies. Founded in 2005, the firm manages approximately $1,500,000,000 across four funds. Headquartered in Boston, Spark maintains an office in New York and invests across the globe. Spark Capital focuses on Internet and mobile investments across the following key categories: advertising & monetization, commerce & services, content & media, financial services, hardware & infrastructure, mobile and social. Some of Spark Capital’s most notable investments include Adap.tv (acquired by AOL), AdMeld (acquired by Google), Oculus (acquired by Facebook), OMGPOP (acquired by Zynga), Tumblr (acquired by Yahoo!), and Twitter (NYSE: TWTR). For more information, visit www.sparkcapital.com.
About SoftBank Capital
SoftBank Capital makes early and growth stage investments in companies that connect people, devices and the world. SoftBank Capital has been investing in category leaders in consumer and enterprise mobile, online advertising, ecommerce, social media and cloud computing since 1995. Its portfolio of current and past investments includes Yahoo!, Etrade, Buddy Media, BuzzFeed, Criteo, Fitbit, Huffington Post and xAd. To learn more, visit www.softbank.com.
About Industry Ventures LLC
Industry Ventures is a leading investment firm that focuses on venture capital. The firm invests directly in venture backed companies through secondaries and co-investments as well as indirectly through LP interest secondaries and primary commitments to early stage venture funds. Founded in 2000, the firm manages over $2 billion of institutional capital and is headquartered in San Francisco with an office in Washington, D.C. For more information, please visit www.industryventures.com.
Silicon Valley Bank
Banking the world’s most innovative companies and exclusive wineries, SVB offers diverse financial services, knowledge, global networks, and world class service to increase our clients’ probability of success. With more than $36 billion in assets and more than 1,800 employees, we provide commercial, international and private banking through our locations around the world. Forbes Magazine ranks us among America’s Best Banks (2015) and Fortune named SVB one of the best places to work (2012). (NASDAQ: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a Member of the FDIC and the Federal Reserve System.
About Work Market
Work Market is the leading enterprise-class platform for the management of contract and freelance talent. Businesses of all sizes use the Work Market platform to manage the complete lifecycle of their freelance talent, including the selection and engaging of contracted resources, the deployment and ongoing management of labor at scale and all associated payment and reporting processes. Our solution allows businesses to increase labor productivity and enhance work quality while dramatically reducing costs. To learn more visit http://www.workmarket.com. Work Market has trademarked the phrase “Find Verify Engage Manage Pay Rate” and the Work Market FMS Framework is patent pending.