Suddenly everyone wants to build tools for freelancers. The world of work is changing and more and more people are freelancing, of their own free will or necessity. According to a survey by freelancing arena upwork last year, more than a third of Americans were freelancers in 2020, contributing $1.2 trillion to the U.S. economy.
fiverr (Nasdaq: FVRR) jumped in early, offering a platform that matches independent contractors with clients, but younger Israeli startups are also building tools meant to help freelancers succeed. honey bookfor example, has developed an application that allows service providers to connect with customers and receive online payments. Lily, a company founded by former employees of Bank Leumi’s Pepper online bank, operates a digital bank for freelancers and small businesses in the US. Part enables companies to pay freelancers around the world.
Tailor-made brands can be added to this list. The company announced today that it has raised $50 million. It was founded in 2015 by Yali Saar, Tom Lahat and Nadav Shatz and is based in New York and Tel Aviv. It allows freelancers and small businesses to profile themselves by designing a logo, setting up a custom website, purchasing a domain and own email address, and creating business cards and merchandise.
“During the coronavirus pandemic, the small business market has grown rapidly and millions of people have started working as freelancers. Some of them have paid jobs, but they also do something independent, such as consultancy or selling cupcakes. They do it to gain economic security in times of crisis, or else they are looking for meaning. Serving these small businesses is the new asset,” said Saar, who is the CEO of Tailor Brands.
Tailor Brands started developing an automatic generator of company logos and that is still its leading service. Today, however, Tailor Brands offers a range of additional services around the logo, such as building a website and purchasing a domain, as part of a $4-20 per month package. The company basically wants to be the first stop for a freelancer starting out building a business digitally, as opposed to starting a service like Wix.com Ltd. (Nasdaq: WIX), which also has a logo generator.
“Historically, there were two entry points for small businesses,” says Saar. “One was the legal registration of the company and the other was the purchase of a domain. We offer a third point, which is logo design. We have more users monthly than large public companies, and they come to us before they have a website or a domain. Many of them haven’t quite decided what their business does yet, but we’re taking them step by step.”
According to SimilarWeb, Tailor Brands’ website was visited 2.2 million times in June, 2.5% more than in the previous month. The average time a visitor spent on the site was six minutes, and 16% of users were from the US, 9% from Brazil and 6% from Mexico.
There are many logo generators on the internet. What’s different about you?
Saar: “In most cases, these sites only offer one service, which is to build a logo. In our case, the logo is just the beginning and we give you a full package. Most of the automatic logo generators you find on the web is stupid “So if you’re a mechanic, you get a logo with a picture of a wrench. With us it’s something on a different level. There are brands that started with us and are now cafe chains, for example.”
And why not just hire a designer?
Saar: “We’re here to help those who don’t want to spend a lot of money on day one. We don’t compete with designers and our clients may later hire professionals to complete it. In 2006, automatic website building emerged. gang, and even then people were asking who would use it. Today most people can do it with something automated. This has changed the work of designers, who no longer have to deal with simple landing pages.”
First investment by GoDaddy in Israel
Tailor Brands employs 90 people in Tel Aviv and New York and has raised $70 million, including the current round, since its inception.
The current round was led by a strategic investor, US website registration and hosting giant GoDaddy (NYSE:GDDY), with a market cap of $14.3 billion. This is GoDaddy’s first investment in Israel. Other investors in the Series C round include OurCrowd and existing investors Pitango Growth, Mangrove Capital Partners (who have also invested in Wix), Armat Group, Disruptive VC and serial entrepreneur Richard Rosenblatt.
Published by Globes, Israel Business News – en.globes.co.il – on July 22, 2021
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