Tel Aviv-based global professional freelancer services marketplace Fiverr has secured a US$60 million Series D investment, led by Square Peg Capital. Other investors involved in the round were existing investors Accel, Qumra Capital and Bessemer Venture Partners.
The startup’s inception took place in 2010 and with the latest round, the total funding raised by the venture is $111 million across five rounds of funding. The latest investment will see bitcoin being integrated as a payment option into Fiverr’s platform, due to its efficiency in settling micropayments speedily, with low transaction and conversion fees.
With the new financing and assistance from the Sqaure Peg Capital team of investors and strategists, Fiverr is aiming to aggressively growth the firm, expanding business operations and its staff count, as well as adding new features to further enhance its offerings and differentiate itself from competitors.
Another change for the Israeli venture is that all freelancers operating on the marketplace can now establish their own price points or ‘Gig’ prices, instead to having to abide by the $5 minimum charge. In addition, new packages with different pricing tiers to simplify how sellers offer their services on the platform are being implemented.
These changes are part of a move to acquire and retain experienced freelancers who have previously been reluctant to use online marketplaces to design and execute pricing packages allowing them to earn more without any perceived quality concerns based solely on price.
In a release, the firm said these changes in pricing structure would enable sellers to increase their earnings, create greater value for buyers and compete for large projects from small & medium enterprises (SMEs), entrepreneurs and corporate operations. “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, CEO of Fiverr.
Kaufman added, “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. With the Gig economy workforce expected to hit 43 per cent of the total U.S. workforce by 2020, we’re bullish about the economic opportunities we’ll create in the near future for our community.”
Fiverr claims to generate close to 1 million digital transactions per month and features a spectrum of services, from one-off design and creative deliverables to projects costing thousands of dollars to execute. It also provide a platform for SMEs and corporates to access a comprehensive array of on-demand creative projects.
Hinting at overseas expansion and a shift to an acquisitive growth strategy, Kaufman stated: “This funding from new and existing partners will help expand our geographic footprint, compete for new talent, add innovative new features and more aggressively grow our company, potentially by acquiring other businesses in our space.”