Shiftgig, a marketplace that connects U.S. employers with workers seeking short-term positions, has raised $20 million in a Series C funding round from DRW Venture Capital, FJ Labs, GGV Capital, and KDWC Ventures.
Founded in 2012, Shiftgig is a mobile-first platform that harnesses the burgeoning “gig economy” by letting workers choose the shifts and days they want to work — and the employer(s) they want to work for. It’s not aimed at those seeking a career position, obviously, but those seeking flexible working arrangements will find it useful.
Prior to now, Shiftgig had raised $36 million, including a chunky $22 million round back in 2015. With its latest cash injection, the Chicago-based startup plans to “extend its lead in the rapidly growing gig economy,” according to a statement, and to expedite its sales and marketing endeavors.
Online marketplaces have emerged as key drivers of the so-called digital economy, with major brands such as eBay, Uber, Amazon, and Airbnb becoming billion-dollar companies off the back of it. In the fledgling startup realm, we’ve seen significant investments in online marketplaces over the past year, including OfferUp, which raised $119 million to help people buy and sell stuff locally. And not too long ago, secondhand clothing marketplace Vinted nabbed $27 million, Etsy-style shopping marketplace Notonthehighstreet.com closed $27.5 million, and online auction house Catawiki secured $82 million.
More specifically, hiring marketplaces have been attracting big bucks of late — back in November, recruitment platform Hired closed out its Series C funding round at $70 million. Earlier in the year, The Muse closed a $16 million round to grow its recruitment service for millennials, Spain-based Jobandtalent grabbed $42 million, Job Today took on $10 million, Jobbio raised $5.6 million, and Handshake raised $10.5 million to help college students search for jobs and internships.
“The success of Uber, Lyft, Postmates and other mobile consumer marketplaces have demonstrated that millions of individuals seek flexibility with their work schedules,” said Eddie Lou, cofounder and CEO of Shiftgig. “Consumers aren’t the only ones taking advantage of labor service platforms; businesses are starting to think strategically about the future of workers. This funding will allow us to fulfill our mission of connecting businesses to millions of qualified, hourly workers seeking short-term gigs.”
Recent research suggests the U.S. gig economy is worth close to $800 billion, with companies such as Shiftgig serving a growing demand for “non-permanent” workers.
“Shiftgig is the U.S. market leader in a massive marketplace,” added Fabrice Grinda, cofounder at FJ Labs. “Many positive macro forces are in their favor: people seeking flexibility as it relates to work, high smartphone penetration, and escalating business enterprise demand, given increasingly tight labor markets.”