Hourly Worker Powerhouse Snagajob Secures $100 Million in Funding
Major Investment To Fuel Growth as the Company Further Mobilizes The Hourly Workforce
ARLINGTON, Va. – February 4, 2016 – Snagajob, America’s largest marketplace for hourly work, has completed a $100 million Rho Acceleration-led investment with NewSpring Capital and the Invus Group. The company will use the proceeds to expand its product offerings and fund select acquisitions.
Founded in 2000, Snagajob is America’s largest marketplace for hourly job seekers and employers through its work with over 65 million members and nearly 200,000 employers, including nearly half of the companies on the Fortune 1000 list and many of the country’s most recognizable brands. The company has redefined and optimized sourcing, recruitment, onboarding and management solutions for the hourly worker industry. This investment will help accelerate Snagajob’s vision of offering a fully mobile, on-demand hourly hiring process while not compromising quality or accuracy.
“Its an exciting time for our industry. However, it’s unfortunate that in the age of on-demand everything, the average hourly job seeker is offered no greater efficiencies when looking for a job,” said Peter Harrison, CEO of Snagajob. “It should only take minutes to secure hourly work, not the days and weeks it takes today. This new funding, coupled with the fact that almost a million workers are creating new profiles on Snagajob every month, will dramatically accelerate our realization of this vision.”
The investsment follows a period of massive growth for the company. Since 2013, Snagajob has nearly doubled its revenue derived from employers and more than doubled its mobile traffic. The company now serves nearly a million job applications a week with over half of these from a mobile device and with a completion rate more than 10 times the industry average. The company also grew its own workforce by 30 percent over the past two years, has expanded its offices into Washington, D.C. last year and is already looking for additional office space.
“The tightening labor market, growing ubiquity of mobile devices and the rise of the on-demand economy, provide the perfect storm for Snagajob to transform the way hourly workers find work and employers find workers,” said Habib Kairouz, managing partner at Rho Acceleration. “We are excited to partner with an industry leader as it accelerates its unique vision.”
As part of the transaction, Habib Kairouz of Rho Acceleration and Marc Lederman of NewSpring Capital will serve on Snagajob’s board of directors. Over the last year, Harrison has also brought on several new executive team members to lead key areas of the company, working to scale the business to the next level and capitalize on its market leadership.
Raymond James served as financial adviser to Snagajob in this transaction.
With over 65 million members and one million new members every 35 days, Snagajob is America’s #1 spot for hourly work and is helping transform the marketplace for on-demand hourly workers through innovative technology. Our mission is to put people in the right fit-positions so they can maximize their potential and live more fulfilling lives. Since 2000, we have been responsible for creating products that make instant and quality connections between workers and employers across a variety of industries, including restaurant, retail, hospitality and healthcare. For more information, visit snagajob.com or follow us @snagajob.
About Rho Acceleration
Rho Acceleration, a division of Rho Capital Partners, makes control-oriented investments in middle market software and digital media companies. We partner with management teams to build industry leading companies by accelerating growth and the path to scale through new organic initiatives and strategic add-on acquisitions. Rho is a global private equity firm with over three decades of experience investing in and partnering with technology companies. The firm’s deep sector knowledge and operational expertise can help companies realize their full potential. Rho was founded in 1981 and manages approximately $1.4 billion with offices in New York, Palo Alto, and Montreal. To learn more about Rho, please visit rho.com.
About NewSpring Capital
NewSpring Capital is a leading provider of private equity capital focused in the Mid-Atlantic region. The Firm manages over $1 billion across four distinct strategies covering the spectrum from growth equity and control buyouts to equity and mezzanine debt. NewSpring Capital combines deep operating knowledge with financial and investing expertise to provide growing companies the financial resources, advice, network of contacts and strategic partnerships necessary to develop their businesses into market leaders. This philosophy has been a key tenet of NewSpring Capital’s approach and the success of its current and former portfolio companies demonstrates the Firm’s commitment. To learn more about NewSpring Capital, please visit newspringcapital.com.
About The Invus Group
The Invus Group is a global investment firm whose mission is to empower entrepreneurs to transform their industries. With the same group of family investors since its founding 30 years ago, Invus invests over $5 billion in an evergreen fund structure out of offices in New York, Paris and Hong Kong. To learn more about Invus, please visit invus.com.