Tailor Brands Raises $ 50 Million to Help Independents Market
Suddenly everyone wants to create tools for freelancers. The world of work is changing and more and more people are starting freelance, by choice or by necessity. According to a survey conducted last year by the independent arena Upwork, more than a third of Americans worked as freelancers in 2020 and contributed $ 1.2 trillion to the US economy.
Fiverr (Nasdaq: FVRR) got started very early, providing a platform connecting independent entrepreneurs to clients, but young Israeli startups are also creating tools to help freelancers succeed. HoneyBook, for example, has developed an app that allows service providers to connect with customers and receive payments online. Lily, a company founded by former employees of Bank Leumi’s online banking Pepper, operates a digital bank for freelancers and small businesses in the United States. Deel allows businesses to pay freelancers around the world.
Custom 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 market themselves by designing a logo, creating a custom website, purchasing a domain and proprietary email address, and creating business cards and merchandise.
“During the coronavirus pandemic, the small business market grew rapidly and millions of people started working as freelancers. Some of them have paid jobs but do something freelance on top of that. of that, which could be consulting or selling cupcakes. They’re doing it in order to achieve economic security in times of crisis, or they’re looking for meaning. Serving these small businesses is the new windfall, “Saar says, who is the CEO of Tailor Brands.
Tailor Brands started out by developing an automatic company logo generator, and it is still its flagship service. Today, however, Tailor Brands offers a series of additional services around the logo, such as building a website and purchasing a domain, on a $ 4-20 per month plan. . The business essentially wants to become the first stop for a freelance writer who is starting to build a business digitally, as opposed to being able to start with 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 come up with a third point, which is the logo design. We have more users every month than the big public companies, and they come to us before they have a website or domain. A lot of them haven’t quite decided what their business does yet, but we’re taking them by the hand one step at a time . “
According to SimilarWeb, the Tailor Brands website saw 2.2 million visits in June, 2.5% more than the previous month. The average time a visitor spent on the site was six minutes, and 16% of users were from the United States, 9% from Brazil, and 6% from Mexico.
There are many logo makers out there on the web. What is different about you?
Saar: “In most cases, these sites only offer one service, that of creating a logo. In our case, the logo is just the start, and we offer you a complete package. Most automatic logo generators that you will find on the web it’s stupid, so if you are a mechanic, you will have a logo with the image of a wrench. With us, it’s something on another level. there are brands that started with us and are now coffee chains, for example. “
And why not just hire a designer?
Saar: “We are here to help those who don’t want to spend a lot of money on the first day. We don’t compete with designers, and our clients may hire professionals later to complete the whole thing. Automatic website building started in 2006 and then people asked who would use it. Today most people can handle something automated. It has changed the work of designers, who no longer need to deal with simple landing pages.
GoDaddy’s first investment in Israel
Tailor Brands employs 90 people in Tel Aviv and New York and, including the current round, has raised $ 70 million since its inception.
The current round was led by a strategic investor, US website registration and hosting giant GoDaddy (NYSE: GDDY), which has a market cap of $ 14.3 billion. This is GoDaddy’s first investment in Israel. Other Series C investors are OurCrowd and existing investors Pitango Growth, Mangrove Capital Partners (which also invested in Wix), Armat Group, Disruptive VC and serial entrepreneur Richard Rosenblatt.
Posted by Globes, Israel business news – en.globes.co.il – on July 22, 2021
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