With the shift toward remote work becoming increasingly common for employees at companies around the world, another segment of workers is poised for big growth—freelancers. 

Hiring freelancers for everything from app development to marketing is not a new concept for some companies. But the massive disruption in work that came with the COVID-19 pandemic has more businesses considering the benefits of flexibility that come with hiring freelancers for extra help on a project. 

As workers are also seeing the advantages of working as a freelancer, there is a burgeoning interest in freelance platforms that help businesses source, hire, and manage top freelance talent.

Investors bullish on freelance marketplaces

Last week, Malt, a European freelancer marketplace, announced a new funding round of €80 million ($97 million) to continue developing its technology and expanding internationally. The investment led by Goldman Sachs Growth Equity and Eurazeo brings the Paris-based company’s valuation to an estimated $489 million, according to TechCrunch.

“Today, there are six million freelance consultants in Europe, a number that is set to grow exponentially in a rapidly changing post-COVID job market. At Malt, our goal is to give companies direct access to a pool of the most qualified and talented freelancers in the world, those who can help them take their businesses to the next level.” – Vincent Huguet, CEO and co-founder at Malt

Malt currently focuses on matching freelancers with employers in France, Germany, and Spain, but has ambitions to expand into new markets. The company, which says it has 250,000 freelancers on its platform, aims to increase revenues by 100% in 2021.  

There are more than 130 products in G2’s Freelance Platforms category, which is designed for products that help companies find workers for temporary roles or special projects. Companies can use these marketplaces to find freelancers for a variety of roles in marketing, programming, design, writing, and administrative support, among many others.

In another recent example of investments in freelance platforms, Boston-based expert marketplace Catalant announced a $35 million funding round in late March, led by the Morningside Group. 

Catalant said demand for freelancers rose in several areas in 2020, including a 124% increase in supply chain, 44% increase in project management, and 25% increase in corporate strategy. 

More established freelance marketplaces have also been the beneficiaries of investor confidence in the last year. Fiverr’s stock price is up 250% compared to a year ago, and Upwork stock is up over 300%. 

Freelance Platform category traffic gets big boost on G2

The new investments in software for finding freelance workers is also evidence in buyers’ interest in G2’s Freelance Platforms category. 

The category, which was created in 2014, has seen a huge growth in traffic over the last 18 months, as traffic to that category in May was up nearly 200% compared to January 2020. The upward trend for Freelance Platforms started as the pandemic took hold in the spring of 2020 and continued this year. 

We expect to see continued strong interest in this category as businesses refine their talent strategies to adapt to the new post-pandemic world of work and freelancers become a growing part of teams at many companies.