Denmark-based Worksome raised a USD $13 million Series A round of venture capital for its freelancer sourcing and hiring app. This brings its total raised to $18.9 million.
The company was born in Copenhagen by a senior X-Google team to provide medium and large businesses with a much more efficient solution to manage and pay their external workforce. Worksome promises a system that allows clients to build talent pools, compliantly pay/contract all types of workers, and invite their preferred supplier list to submit candidates. They boast a freelancer marketplace with more than 30,000 “vetted” freelancers.
Worksome is attempting to cover the end-to-end spectrum of hiring and managing the independent workforce from sourcing talent by providing it via a job board marketplace and intake from third-party sources to managing contractor payment and compliance. A freelancer platform is dependent on being source agnostic and accepting talent from myriad sources and platforms. The decision to be a source of talent, with its own marketplace, may cause trouble for both Worksome and its clients if external sources of talent refuse to submit through the platform to avoid the risk of seeding a competitive source. It’s a potential conflict of interest that most hiring platforms avoid.
Worksome plans to focus its efforts with the support of the new funding on growth in the USA. Independent workforce trends have been growing rapidly since the early 2000s, and like many trends, the return to work and the workplace post-COVID has accelerated this. The independent workforce, which includes freelancers, contractors, consultants, agencies, and gig workers, has grown from 16 million in 2011 to more than 38 million in 2020 a year in which this segment of the workforce generated $1.7 trillion in revenue or 5.7% of the US GDP according to MBO Partners. 48% of the US private workforce has worked independently, and this segment is growing three times faster than the rate of overall employment. As we’ve seen in the recovery of every economic downturn since the late 80s, employers embrace independent workers, hedging their bets during times of uncertainty.
$2.7 billion was invested globally in work tech during 2021 Q1 alone. Get WorkTech’s free report and analysis here.