Lystable announced on Thursday that it has raised an additional $10 million in capital to support expanding 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 happened 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 Wilmont Ventures. Lystable has now raised $21 million for its Series A.
Founded in 2014 as an online platform for businesses to manage freelancers, Lystable is more than just managing paychecks and invoices. It’s about on-boarding these workers into systems while also providing tools around collaboration. Company chief executive Peter Johnston said that the $10 million investment will help with expanding the app throughout the U.S. (its headquarters were originally in London) while also giving it the runway to bring on four more senior executives in the next 6 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 pay freelancers for work provided easily. The new funds will help with the worldwide distribution of the service.
“The freelance economy is the new normal, and became that way extremely quickly,” remarked 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 launching, Lystable counts 42,000 using its service, something Johnston said competes against traditional spreadsheets, phone calls, and “old school corporate freelancer management systems”. In a time where people are creating their own jobs or finding what’s enjoyable about life, traditional vendors aren’t really as significant anymore. In fact, a survey by the Freelancers Union indicated that freelancers make up 35 percent of U.S. workers, collectively earning $1 trillion in 2016. Companies hiring these contractors will need a way to organize and track them, and Lystable believes it can be the 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“Companies now rely on countless freelancers, sometimes as many freelancers as full-time employees, yet they rely on outdated methods from central HR functions who cant onboard them quick enough,” Johnston told VentureBeat in an email.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 now raised $25 million to date in funding.
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