Fiverr, an online marketplace for freelancers, has announced it raising $60 million in Series D funding led by Square Peg Capital along with others that include Bessemer Venture Partners, Accel Partners and Qumra Capital. This round of funding brings the company’s total funding to $110 million. Along with funding, it has also announced it eliminating the price minimum of $5 all together.
Founded in 2010, Fiverr is the world’s largest marketplace for creative and professional services with more than 3 million Gigs in more than 100 different categories over 196 countries. The Gig packages allows freelancers to not only set their own prices but also bundle services. Similar to TaskRabbit, Tel Aviv-based Fiverr has positioned itself with a niche in the so-called “sharing economy,” allowing anyone market their digital skills like content writing, web design and marketing to look for buyers on the Internet.
In the press release, “With the Gig economy workforce expected to hit 43% of the total workforce by 2020, we are bullish about the economic opportunities we’ll create in the near future of our community.” With the gig packages, “This will dramatically simplify the way Fiverr sellers price and bundle services. The new gig packages will also help Fiverr sellers easily pocket more cash, create greater value for buyers, and make sellers nimble enough to attract SMBs, entrepreneurs, and even corporate marketing departments.”
Fiverr claims that its new fund and eliminating the $5 base price is to attract the 97% of freelancers who still depend on word of mouth and local networks to find work. Though it generates more than 1 million transactions per month, the change in the pricing policy will help the cmpany focus on bundles to help workers vie for bigger projects, maybe with an eye on targeting small businesses. In simple terms, it is trying to attract more skill personnel with various skill set on board.
“We started Fiverr to prove that you can bring the world of freelance creative services online and make buying gigs as easy as purchasing a flat-screen TV online,” said Micha Kaufman, Fiverr’s CEO. “Today, we see more freelancers shifting their business online, which grabs the attention of investors, and they’re driving the overall size of the marketplace to dizzying new heights.”