Fiverr, a global marketplace offering tasks and services for as little as $5, has raised $15 million in funding from Accel Partners and Bessemer Venture Partners. This brings the company’s total funding to $20 million.
Merchants, entrepreneurs, contractors and more workers in more than 200 countries use Fiverr to monetize their skills, talents and resources. They can offer “Gigs”, ranging from web design, logo creation and market research, to personal greetings and video animation, in Fiverr. Customers can then access these jobs for services they need rendered. Fiverr helps service-providers collect payments, promote their services, manage orders, exchange files and communicate with buyers.
In January 2012, Fiverr launched Levels, a reputation-based promotion system to help entrepreneurs build their business and earn more revenue. After sellers successfully complete at least 10 transactions, they unlock advanced up-selling tools to offer Gig extras and charge more for their services. Now more than 30 percent of Fiverr transactions are greater than the site’s starting price of $5.
Currently tasks range from $5 to $150, and there are over 650,000 tasks and services listed on Fiverr. Co-founder Micha Kaufman explains that the entire ordering process for a task takes seconds and there have been millions of tasks completed to date.
The company, founded by Shai Wininger and Kaufman, has grown 600% in transaction volume since the beginning of 2011 and currently employs more than 40 people in Israel, the U.S. and Europe.
“Our vision is to turn Fiverr into the eBay for the service economy,” says Kaufman.
The new funding will be used for global expansion, product development and hiring. Fiverr plans to double its team by the end of 2012.