Huddling Up With Investors
The social network business is actively raising funding for its freelancer marketplace using the Republic crowdfunding platform.
With the help of interested investors, the Huddle campaign has already met its minimum funding goal of $25,000. In fact, the startup company has generated over $111,000 for its freelancer marketplace. Huddle still has a few months left to push toward its maximum funding limit of $1.07 million. Investors in the business are being offered equity in the company through a simple agreement for future equity (SAFE) contract.
With new funding from the crowdfunding campaign, the startup business aims to hire new members to its development team and continue to build out the user interface for its freelancer marketplace. Prior to the latest fundraising efforts, the company successfully pulled in $1 million in funding from investors, which included Outlander, Miami Angels, and Backend Capital.
Huddle claims that its company has enabled $343,000 in transactions between creators and founders on its freelancer platform. The business social network also claims that it has received applications to join its platform from over 300 creators.
Building a Team
Founded in 2015 by entrepreneurs Michael Saloio and Stephanie Golik, Huddle takes a unique approach to the freelancer marketplace business model. The social network specifically focuses on connecting founders of new startups with qualified creators. Only freelancers who have been vetted by Huddle are allowed to match with founders on the social network.
Creators are matched with founders according to the project’s industry, budget, and timeline. Once matched with a team, founders have multiple ways to compensate creators for their labor.
Rather than simply paying freelancers with cash, entrepreneurs have the option of offering their team equity in the startup company. This option is designed to help entrepreneurs with a limited budget hire an experienced team without depleting their limited financial resources. It also allows freelancers to have a long-term, vested interest in the project they are working on.
Huddle’s business model entitles the company to a 25% service fee on both cash and equity transactions through the platform, meaning Huddle also has a vested interest in projects taking place on its social network.
Disrupting the Freelancing Platform Industry
While existing platforms like Upwork and Freelancer.com already control a sizable portion of the freelancing market, Huddle offers a unique opportunity to both founders and freelancers that may help the company capture its own piece of the industry. The opportunity to earn sweat equity will appeal to creators looking to make long-term investments in their work.
That being said, Huddle only allows vetted individuals to utilize its platform, which may cause the social network to scale more slowly than some of its competitors. According to a study conducted by Upwork, an estimated 36% of the US workforce conducted freelance work during 2020.
About the Author
James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.