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  • European Investment Firms, High-Tech Grunderfonds and Corporate Finance Partners Together with Private Investor, Klaus Wecken Lead € 4.25 Million ($5.91 Million) Investment in a Series B Funding Round for Clickworker

    March 25th, 2011 49 comments

    Based in Essen Germany and having opened new offices in both San Francisco, California, and Rochester, New York, Germany’s largest online outsourcing company, Clickworker, announced on March 24, 2011, that it has secured a €4.25 Million ($5.91 million USD) funding in series B funding round led by two European investment firms, High-Tech Grunderfonds and Corporate Finance Partners together with one of Europe’s largest private investor, Klaus Wecken. Other investors who participated in this funding round have not been disclosed to the public.

    Clickworker is a company that was founded in 2006 in Essen Germany designed to outsource labor globally for companies who need labor and want to save money. The company has an effective outsourcing platform that includes the employment of crowd-sourcing both workers and know-how through different click workers. A click worker describes an individual who works as an independent contractor who works by using his or her own computer, electronic equipment, and schedule. Click workers who use the Clickworker.com website work for different tasks for a company’s project on a basic web browser and work on individual tasks for a piece rate charge per task. The vast majority of the tasks that click workers work on are typically a larger more complex project that a company who employs click workers through the site.

    Typically, most of the services provided by click workers who use the Clickworker.com site are either content writing, data entry, research, and survey processing. Though Clickworker.com is not new to the industry and has some rivals, such as Elance, who is a pioneer in the online outsourcing portal industry and oDesk, which has as much of a presence as Elance, Clickworker.com does provide a unique approach to the industry, allowing it to grow so rapidly.

    As far as content writing is concerned, the philosophy that Clickworker.com holds is that “Content is King!” Clickworker.com advertises that the contact writing that its click workers do write rich content and SEO, or search engine optimized, texts for articles or blogs that are rich in content in a wide variety of languages. Click workers who are on the Clickworker.com portal are expected to provide top quality work for companies and individuals who outsource their writing to independent contractors worldwide.

    Likewise, when it comes to data entry, data and survey processing, Clickworker.com advertises that its click workers are expected to do the highest quality of work done for clients who find outsourced labor on Clickworker.com.

    Click workers also do research and provide information to clients on the web. Typically, research is done by finding information about different companies, organizations, and other institutions that clients might be looking for and need outsourced labor to do this tedious work.

    What is great about Clickworker.com is that almost anyone is able to join and become a click worker. If someone has a computer, internet connection, and a basic web browser, they do have the qualifications of being a click worker. Furthermore, registration on Clickworker.com is quite simple and there are no rings and hoops to jump through or pass complicated comprehension tests, like independent contractors who sign up for Elance and oDesk are required to do before they can find work.

    Once a click worker has registered on the site, they can choose a wide variety of different jobs that are posted on Clickworker.com and can communicate with clients. Furthermore, Clickworker.com provides a communication message board where all client and click worker communications are confidential and click workers also have access to a secure payment system to receive payments for their work.

    Registration on Clickworker.com is free for click workers, however, before a click worker can start working on jobs with the site, they do need to take a special grammar and language assessment test to test basic writing and oral language skills to ensure that quality work will be done. These assessment tests are different from the tests which Elance and oDesk provide. As a provider on Elance and oDesk, they will need to take a complicated multiple guess exam to ensure they understand all the rules of those two sites. Furthermore, Elance requires a provider to score at least 80% on its rules comprehension test, prior to being able to look for jobs on Elance. Elance allows for three tries before refusing services to a provider, but oDesk can be a bit more complicated. With oDesk, independent contractors need to take an oDesk exam together with verifying three different identification documents, such as a passport, driver’s license, or other identifying document, a secondary identification document, and a bank statement from the last six months. The bank statement must have the independent contractor’s name and address on it. This can be a complex process and many independent contractors are denied due to errors in the identification process that oDesk requires.

    Clickworker.com bypasses all this electronic red tape, making it much easier for click workers to find work and for companies who are outsourcing labor to get the services they need done without any hassle. For this reason, Clickworker is projected to do well in the future. Indications of the company already experiencing rapid growth are already quite visible. Only last year, in 2010, Clickworker has grown to such high proportions, that it has already opened two offices in the United States of America to run its US and Canada operations. Its main office in the US is located in San Francisco, California, and the company has also opened a second office in Rochester, New York.

    Proceeds from this funding round will go to help Clickworker to continue its expansion operations in the US and Canadian markets. The company also plans to develop its platform to meet the needs of both companies and click workers in the US and also to augment its European base.

    According to the CEO of Clickworker’s US operations, Greg Curhan, many people have found the internet to be a great place to be able to find part-time work and earn money from home for a wide variety of reasons. Clickworker is prime to tap into this market and enable people who are eager to find work and get paid without having to leave the comforts of their own home and work at their own schedule. Not only is outsourcing much easier as people find ways to earn money online by doing part-time work, but Clickworker has also found that its crowd sourcing platform, which chooses a crowd of people to micro task, or different people who are working independently on individual tasks of one larger project has been found to be a very efficient way for corporations to get massive projects done at a much lower cost than with more conventional methods. The primary cause of Clickworker’s growth is primarily happy customers, who are large corporations and other organizations who are constantly looking for cheaper ways to outsource labor and reduce their labor and human resources costs. Mr. Curhan further added that Clickworker is great for those new startup companies who do not have the capital yet to finance a large human resources department and the cost of hiring a large number of employees to do work that individual click workers can do, and best of all for Clickworker’s clients, the labor any of the client companies needs done is all on demand, eliminating the need for a human resources representative to filter through thousands of job applications.

    The private investor, who played a leading role in this funding round, Klaus Wecken, also had many great things to say about Clickworker. In fact, after looking at the market for crowd sourcing, Mr. Wecken thought that his investment in Clickworker was a highly promising one due to the rapid growth of this emerging market that he has even increased his investment into the company and believes that his ROI will exceed his expectations. Mr. Wecken further stated that a high growth tech and internet company, such as Clickworker plays a key role in his investment strategy.

    High-Tech Grunderfonds is an investment firm that invests in young companies who are in the tech industry. The firm prefers to invest in those tech companies that show great promise for growth and have a highly experienced and energetic management team who drive the company down the road to success. The firm invests high risk venture capital in companies who are primarily in either seed or early series A or B stage. Some other companies in High-Tech Grunderfonds portfolio include Pas Analytik, Windeln.de, Confweaver, TM3 Software, and others.

    Corporate Finance Partners is an international finance advising service company which has its headquarters in Frankfurt am Main, in Germany. The firm provides clients with a wide variety of financial services on a global scale in different fields, which include corporate financing services that include mergers, acquisitions, private equity, and venture capital investments. The firm has a wide variety of industry and stage preferences and invests worldwide. Some other companies in Corporate Financial Partners portfolio include Kauf Da, Brille24, eBay, and others.

 

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