Freelance online platform Elance gets $16m investment

Wed, 25 Jan 2012

Elance, the global online work platform, has secured $16m (£10.3m) in funding to fuel its growth plans.

The investment will fund Elance’s growth, as the company predicts more businesses build contingent workforces in the cloud.

The expansion capital is led by the Stripes Group with existing investors, New Enterprise Associates (NEA) and Kleiner Perkins Caufield & Byers, also participating. 

Fabio Rosati, chief executive of Elance, says: “It is clear that a structural change in traditional employment is underway. Work is no longer confined to the 9-5 and the office: people are working online with multiple clients as a career choice and companies are hiring online teams as a core business strategy.

“This investment will help Elance keep up with demand and continue to innovate work.”

In addition, Dan Marriott, managing partner at Stripes Group, and Paul Hsiao, partner at NEA, were appointed to Elance’s board of directors.

Marriott, whose firm led the investment, brings extensive experience building market-leading internet businesses such as Ticketmaster, Citysearch and Match.com

According to Elance, the number of businesses hiring and the number of online professionals working through the platform grew more than 120% since 2010. 

Elance’s ‘European Online Employment Report’ revealed that the UK market is booming, with a 55% increase in UK businesses hiring online in 2011.