Industry News

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Fiverr Launches $100 Million Secondary Offering

Fiverr International Ltd. (NYSE: FVRR) announced a public offering of $100 million in ordinary shares. The human cloud platform is based in Tel Aviv, Israel and began trading on the New York Stock Exchange last June. It plans to use the proceeds for working capital and funding growth.

The offering is pursuant to a registration statement on a Form F-1 filed Tuesday with the US Securities and Exchange Commission.

Fiverr also intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the ordinary shares sold in the offering at the public offering price, less underwriting commissions.

Fiverr this month reported first-quarter revenue rose 43.7%, with accelerated growth in April. The company also revised second-quarter guidance upward and is expecting growth of between 37% and 41%.

The global Covid-19 crisis has not had a material negative impact on its business so far, the company stated in its filing yesterday. It will continue to assess the situation, including abiding by any government-imposed restrictions, market by market.

“Our business experienced increased volatility in March as the impact of Covid-19 intensified globally, but we were able to quickly rebound and resume growth within a few weeks,” the filing said. “Since then, our business has continued to gain momentum across all cohorts, all verticals and in the United States and other countries. We believe the global shelter-in-place restrictions have triggered businesses to invest more into their online presence and individuals to spend more time online, both of which provided tailwinds for us.”

Fiverr shares were down 10.18% to $56.01 at 1:14 p.m. Eastern time; the company had a market cap of $1.99 billion, according to

Truework raises $30 million Series B funding round

Activant Capital led a $30 million Series B funding round, announced Wednesday, with participation from existing investors Sequoia Capital and Khosla Ventures. The round also included technology leaders Jeff Weiner (LinkedIn); Tom Gonser (Docusign); William Hockey (Plaid); and Daniel Yanisse (Checkr).

Truework has raised a total of $44.9 million since its inception in 2017, Sandler said. Previous investments included a $12 million Series A, led by Sequoia in July 2019, and a Khosla-led $2.9 million seed round in April 2018, according to Crunchbase data.

As part of the investment, Activant Capital’s Founder and Partner Steve Sarracino will join Truework’s board of directors.

“Truework’s platform sits at the center of consumers’ most important transactions and life events, from purchasing a home, to securing a new job,” Sarracino said in a written statement. “Up until now, the identity verification process has been painful, expensive and opaque for all parties involved, something we’ve seen first-hand in the mortgage space. Starting with income and employment, Truework is setting the standard for consent-based verifications and unlocking the next wave of the digital economy.”

Giving back consent
Sandler founded Truework with Ethan Winchell and Victor Kabdebon as a verified identity platform to protect sensitive personal data behind consumer consent. Company human resources departments use the platform so they don’t have to respond directly to inquiries from entities requesting income and employment information for purposes of securing a loan or apartment, for example, Sandler said.

Going after new markets
Three years after launching its platform, Truework has amassed a network of over 40,000 verifiers, including lenders, landlords and background check companies, Sandler said. Demand to join the platform has increased quickly—the number of verifiers increased 60 percent from December 2019–as more companies have gone remote and aren’t there to answer phones or check fax machines, he added.

The company also signed on with Duke University Health System to provide a hotline and support services for its employees, as well as working with tech law firm SixFifty, on its policy around return-to-work.

Truework will be using the Series B funds to continue its growth into new markets, new features and more value-added offerings, Sandler said. Its employer network already includes nearly 100 enterprise companies and more than 20,000 small businesses, the company said in a written statement.

One of those new markets is medical information. In March, the company launched an application programming interface to allow lenders and medical staffing agencies to integrate Truework’s verification service directly into their applications and workflows. In addition, Truework went live last week with a free product for HR teams to track COVID-19-related data throughout its workforce while maintaining employee consent, Sandler said.

“We also plan to go deeper into the health care industry to address medical staffing,” he said. “Employers need to verify new doctors and nurses as they start, including COVID testing results, vaccinations, certifications and other pieces of information.”

Dublin based acquired by iCIMS

iCIMS announced that it is acquiring Dublin-based data science start-up, which has created an AI solution for recruitment., which was featured in our Start-up of the Week series in 2017, uses deep learning and natural language understanding to support HR tech vendors, enterprises and staffing agencies in their work. The platform has been used by companies such as Microsoft, CPL and iCIMS.
Cloud recruiting platform provider iCIMS has now revealed plans to launch an AI solution of its own, called iCIMS Talent Logic, which can deliver “speed and precision” for building diverse workforces at scale.

It said that the new platform will be powered by and iCIMS’ capabilities to help customers hire in a new way and “stay a step ahead” in a rapidly changing workforce environment.

Terms of the deal were not disclosed.

Traitify raises $12M Series B to grow personality assessments for recruiting

Traitify, which makes a visual personality assessment platform that is used by companies as they recruit employees, raised $12 million in a Series B funding round, said CEO Dan Sines.

The round was led by JMI Holdings, LLC, which has an office in Harbor East, and included participation from existing investors.

Employing a mix of psychologists and technologists, the Highlandtown-based company that was founded in 2011 developed an image-based personality test that can be completed on a mobile device in less than two minutes, and is based on the “Big 5” personality traits. Used during the application process, it’s designed to help the human resources teams to understand candidates and get a sense of who will perform well in specific positions. It also gives the candidates feedback and can enable communication based on specific traits.

Employers that are receiving hundreds or thousands of applications often use personality tests. Traitify’s system helps to speed up the process with a faster method than paper-and-pencil tests, as well as automate both the process and the insights provided. The company has found growth working with companies that hire large numbers of hourly employees. Its clients include human resources teams at companies like JO-ANN Stores, McDonalds Canada and Australia-based Coles Supermarkets.

“Traitify is tackling a pervasive problem plaguing nearly every industry: disengaging and tedious personality tests used for hiring decisions,” said Rick Nelson, investment director at JMI Holdings, LLC, in a statement. “With its creative approach and forward-thinking leadership, we believe Traitify has the opportunity to become the industry standard, grow exponentially and build lasting value for both businesses and their employees.”

The COVID-19 pandemic has led some retailers to furlough workers, while others, like grocery stores, have been hiring in waves. Sines said the company is also expanding into manufacturing and logistics amid increases in hiring during the pandemic. With reopening, waves of new positions could follow, and companies will need help sorting it all out.

“The purpose of the investment is to fuel our product growth,” Sines said.

The company has plans for new content, engagement and development platforms, Sines said. It is also looking to expand outreach in sales and marketing. Going forward, it is planning hiring.

The Series B represents an expansion round. It has a product that works and has found a fit with customers. Over the last year and a half, Sines said the team of 30 people has grown its go-to-market strategy. Last year, former executive Chris Heine joined as COO. It has also gained traction with customers.

“That built up the base that we needed to go and prove ourselves for a round like this to really expand,” Sines said.

Zenjob gets $30 Million to take its digital staffing service nationwide and beyond

Berlin -based recruitment startup, Zenjob, which operates a digital platform connecting students with highly flexible temp jobs in sectors such as retail, logistics and hospitality, has closed a €27 million ($30M) Series C led by Forestay Capital. Also participating in the funding round: Redalpine, Acton Capital, Axa Venture Partners and Atlantic Labs.

Prior to this round Zenjob, a 500 startups growth hacking program alum, had raised just under $25M, according to Crunchbase.

The 2015 founded startup says it plans to use the money to further expand in Germany, where it currently offers a service in 14 cities — letting employers book student workers by the hour, with as little as 24 hours’ advance notice. Flush with Series C cash it’s now aiming to be nationwide by the end of the year.

It is also planning its first international expansion — spying opportunity amid the coronavirus crisis as it suggests social distancing requirements are generating demand for additional staff in certain sectors. (Which is something we’ve also heard from other recruitment startups in recent months.)

“We expect to go international and launch two further countries in the next 12 months. We are looking into expanding into neighbouring countries such as France, Scandinavia or the Netherlands,” a spokeswoman for the company told us.

“The coronavirus crisis requires social distancing, which has created increased demand for staffing in, especially, logistics and retail,” added Fritz Trott, co-founder and CEO, in a statement. “Our service means that we can assist in the almost effortless digital hiring of hundreds of new students every day to fill these gaps.”

The new financing will also go on tech development to push for greater efficiency gains for users.

Zenjob says it wants to be able to use algorithms to further help predict staff demand in future, for example.

As well as job matching, the platform handles billing to cut down admin requirements for employers wanting temps to plug seasonal and/or short term vacancies.

Zenjob says its app reaches more than 15,000 students daily at this stage. It hasn’t provided data on how many employers are signed up to use the service.

Commenting on the Series C in a statement, Forestay Capital’s managing partner, Frederic Wohlwend, said: “We are delighted to have invested in Zenjob and are very much looking forward to working with Fritz and his highly talented team. Zenjob is a company that has deployed disruptive technology to shake-up the temporary employment market and which, prior to this coronavirus crisis, had already proven itself to have an exciting future. Now, during this pandemic, its flexible digital recruiting service has, in our eyes, further been confirmed as a model for keeping the working world moving.”