Lystable announced on Thursday that it has raised an additional $10 million in capital to expand access of its freelance collaboration app across the United States. The latest infusion of cash is part of the company’s existing Series A, which was announced in June 2016.
Investors putting money into the round include Valar Ventures, which is associated with Peter Thiel; Max Levchin’s SciFi VC; Kindred Capital; Goldcrest Capital; Glynn Capital; and Wilmot Ventures. Lystable has now raised $21 million for its Series A.
Founded in 2014 as an online platform to help businesses manage freelancers, Lystable is about more than just paychecks and invoices. It aims to simplify the onboarding process and provide a range of collaboration tools. Company chief executive Peter Johnston said that the $10 million investment will help expand the app throughout the U.S. (Lystable’s headquarters were originally in London), while also giving it the runway to bring on four more senior executives in the next six months.
He also suggested that funds will be used for the development and launch of a new product, called Lystable Pay, which will enable businesses to easily pay freelancers for work provided. The new funds will help with the worldwide distribution of this service.
“The freelance economy is the new normal and became that way extremely quickly,” said SciFi VC partner Eric Scott in a statement. “Companies at the forefront of this trend are scrapping their spreadsheets and antiquated Freelance Management Systems and opting for Lystable’s freelancer collaboration app to do the job because it’s so much more efficient and easier to use.”
Since launch, Lystable has counted 42,000 users of its service, which Johnston said competes against traditional spreadsheets, phone calls, and “old school corporate freelancer management systems.” In a time when people are increasingly creating their own jobs, traditional vendors are becoming less significant. In fact, a survey by the Freelancers Union indicated that freelancers make up 35 percent of U.S. workers, and collectively earned $1 trillion in 2016. Companies hiring these contractors will need a way to organize and track them, and Lystable believes it can be that solution.
“Companies now rely on countless freelancers, sometimes as many freelancers as full-time employees, yet they rely on outdated methods from central HR functions who can’t onboard them quickly enough,” Johnston told VentureBeat in an email. “Once onboarded, companies aren’t set up to integrate freelancers into their day-to-day workflow or tools, we help teams get freelancers access to the tools they need to work effectively. Finally, managing countless freelancer invoices is a huge pain for finance, we streamline this for them.”
Lystable has raised $25 million in funding to date.