Gigster is shifting from letting anyone outsource full-stack app development to building next-gen tech projects for big companies. If an enterprise needs machine learning and vision, data visualization, blockchain, React or Swift work done and doesn’t want to hire full-time employees, Gigster assembles a squad of freelancers and guarantees the work at a fixed price.
“Since the invention of computers, new technologies have made programming languages exponentially higher level,” Gigster co-founder Roger Dickey tells me. “These shifts, combined with the ‘future of work’ accelerants such as freelancing and AI, have changed software engineering dramatically and will continue to do so.”
Gigster raised its 2016 Series A, it had just three enterprise clients. Since then it’s scaled up to more than 40, with project size up 10X and revenue up 3.5X to the double-digit millions per year. That’s because enterprises can afford to shell out the big bucks for high-quality development. When budgets are tight with small-to-medium sized businesses, “we’re able to do a good job for the client, but not always as good as the client wants. It’s a bit of a mismatch,” co-founder Roger Dickey explains. “With enterprises, our satisfaction has been off the charts.” Revenue is up 2.5X year-over-year.When
As of this writing, On-demand software development startup Gigster has raised a $20 million Series B round from a bevy of high-profile names including basketball legend Michael Jordan, Salesforce CEO Marc Benioff and Ashton Kutcher’s venture capital firm Sound Ventures.
Gigster offers a platform and marketplace for freelance software development talent to link up with businesses in need of engineering expertise. The big selling point for non-technical companies is that Gigster’s freelance development are led by a project manager who takes the daily management out of the customer’s hands.
Gigster CEO Roger Dickey said while the company had initially focused on on mid-market companies, it’s seen increasing growth with enterprise clients necessitating a capital injection to continue that trajectory.
“We made a substantial amount of progress since our Series A into enterprise,” Dickey said. “We want to continue to fuel that expansion and what that means is working with more customers and building up the capabilities to deliver more complex software at increasing levels of quality, reliability, efficiency.”
Gigster’scurrent workforce.It also means a major hiring spree. The company plans to add roughly 120 employees across teams over the next year, tripling the size of
The company has grown from three to more than 40 enterprise clients over the last year, with 65 percent quarter-over-quarter increase in average project size. Year-over-year revenue has grown by 250 percent. A sample of the company’s clientele include global brands like MasterCard, Airbus andPepsiCo.
Dickey attributes the company’s recent success with enterprise clients to the company’s expertise in emerging technology fields like machine learning and vision, blockchain and data science, where there is a dearth of available talent.
“Enterprises have just as much trouble hiring as startups, if not more because they’re not solving some sexy problem,” Dickey said.
Gigster is also increasingly implementing machine learning and automation in its development process. The company regularly uses prediction algorithms to build the best teams for clients, automatically determine pricing and timelines as well as foresee issues before a customer even knows about them.
“Gigster is fundamentally transforming the way top engineering talent is convened and deployed,” said Redpoint Ventures Partner Ryan Sarver. “Gigster’s ability to automate projects through automation and AI, make it highly efficient and scalable.”
“We’re not just going to be selling services to clients, we’re eventually going to be selling recurring revenue software solution that we customize,” Dickey said.
With the increased size and complexity of the Gigster’s project demands, Dickey said the startup’s domestic freelance pool has transitioned to working more hours.
In order to build a more reliable workforce of freelancers, the company has started to offer innovative benefits like its Gigster Fund, which invests and takes equity stakes in some clients. Profits from the fund go to bonuses for developers.
Gigster is a website which allows users to get tech projects built on demand. It was co-founded by Roger Dickey and Debo Olaosebikan and based in San Francisco, California. They received seed funding from Greylock Partners,Bloomberg Beta, as well as notable angel investors and founders Naval Ravikant of AngelList, Justin Waldron of Zynga, and Emmett Shear of TwitchTV, among others. They were a part of Y-Combinator‘s Summer 2015 class.
On December 7, 2015, Gigster announced its $10m Series A funding round led by Andreessen Horowitz, which will be used to further build the startup’s AI and machine learning technology. The company announced on August 29, 2017 that they had raised $20 million in investments led by RedPoint Ventures for its Series B funding round, which included existing investor, Andreessen Horowitz and first time tech investor and retired basketball star, Michael Jordan.