Fiverr: Graphics, marketing, fun and more online services for $5.
Fiverr Raises $15 Million In Funding
Fiverr is looking to expand its reach in the micro-services space and has just received another $15 million in funding. The round was led by Accel Partners and Bessemer Venture Partners and adds to the $5 million the company received at the start of its operations. Founded by Israeli entrepreneurs Shai Wininger and Micha Kaufman back in mid-2010, the company has seen massive growth in its transaction value. This amount ballooned to over 600% in 2011 alone and the projections for 2012 are equally stunning.
The website has been featured in major news journals and is now in the top 100 most popular sites in the US and the top 200 in the world. The site is also evolving from the early days of ‘gigs for a fiverr’. There are now over 750,000 services listed and they range from $5 all the way up to $150. More than 30% of these transactions are greater than the initial $5 starting price so it looks like the service providers are finally making some gains.
Of course, increased transaction size benefits Fiverr too who takes a $1 from every $5 transaction. This cut is no doubt proportional and if investors are looking to make back their $15 million, the company will need to start generating some profits.
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