After a merger, Elance-oDesk raises $30 million in capital
Closing a merger is hardly the end of the road. With restructuring and integration efforts abound, the cost in time, energy and financial resources begins when a deal is finalized. Many companies find themselves in need of additional capital to implement plans for growth and long-term strategic development, especially for tech companies looking to reach the next level.
Eight months ago, Elance and oDesk, two online job listing websites, merged to create a larger employment market entity, Elance-oDesk. Since then, the group has announced the addition of $30 million of funds from the firm Benchmark Capital, which will help the organization expand its footprint and develop its programming. Benchmark Capital is joined by several other investors hoping to see the merged company dominate the marketplace.
But the development, nearly one year after the fact, should be a reminder to tech entrepreneurs to imagine ways and means for growth beyond the merger itself. A merger can generate the excitement and confidence of investors to give the company the push it needs toward success. Since the merger, TechCrunch reports the company has navigated the path toward merging technologies, a consolidation effort that tech companies are especially charged with making seamless. By combining their analogous services, programmers and executives hope to make the service an unmissable opportunity for freelancers looking for short-term employment.
"Its business also continues to grow. Elance-oDesk now has 9.3 million freelancers and 3.7 million businesses on the platform," writes Ryan Lawler in TechCrunch. "both of which are up pretty dramatically from a year ago. It also claims 2.7 million annualized job postings being put up, with workers making $900 million in annualized earnings."
Previous to the new capital, the company had raised around $139 million in investments, so the grand total has risen to almost $170 million.