Upwork’s CEO Stephane Kariel says the company is thrilled to make a difference in how work is completed. Upwork helps businesses locate, work with, hire and pay remote workers in any place at any time. The mission of the company is even bigger than that. The goal is to provide more work opportunities to increase the livelihood of people. He feels that going public will help that happen.
Plans For More
Upwork has a goal to make $160 million. The plan is to offer 5.48 million shares for about $12 to $14. This is only .03 million more shares than initially planned for a price of $10 to $12. The hope is by the midpoint the company will get close to 20% additional in proceeds. Dragoneer Investment Group has already increased the intent to purchase to $32 million from $27 million. This covers close to 20% of deal already.
Freelance Companies Are On Board
Upwork’s initial public offering is just another company on the list of private successful companies that wish to use the public market to get capital for growth. There were two other freelancer companies that went public this week. This shows the times right now are for growth of the companies with independent contractors. Speculation has surfaced assuming that the freelance company fiverr may be public by 2019.
Upwork’s announcement is on schedule from reports earlier in 2018 saying the company made a confidential filing to get the process going. The point in doing confidential filing is to quietly feel out the investors and start the process, yet keep things under wraps to avoid the public scrutiny.
The company has not revealed its valuation since 2014. At that time it had a value of $700 million. Sources has reported that Upwork has used its own capital as well its investors DAG Ventures, Stripes Group, T. Rowe Price, FirstMark Capital, Jackson Square Ventures, and Globespan Capital Partners. Things that have attracted investors to Upwork is the fast growth, positive free cash flow, and investors get a voice in the corporate governance of the company.