Friday Funding: Wingspan Raises $14 Million
By: James Flippin · March 17, 2023 · Reading Time: 3 minutes
The Raise
Wingspan, a payroll platform for freelancers and contractors, just raised $14 million to reach a total valuation of $23.5 million. The Series A funding round was led by Airbnb (ABNB) and Stripe investor Andreessen Horowitz, joining Distributed Ventures, Long Journey Ventures, Ludlow Ventures, and 186 Ventures.
The startup provides an all-in-one suite of tools to make it easier for businesses and contractors to work together. So far, Wingspan has over 20,000 members and, if trends continue, will pass $1 billion in contractor payments by the end of 2023.
The Pitch
Post-pandemic, many companies are forming more flexible working arrangements with their workforce. In fact, 45% of businesses are using more freelancers now than before the pandemic, according to Fiverr (FVRR).
That said, working with freelancers can be more difficult to manage than a team of full-time employees — and Wingspan wants to help. The startup offers an all-in-one solution that benefits freelancers and businesses alike. This includes services like payroll, invoicing, contractor benefits, onboarding, and more.
With fresh funding, Wingspan plans to double its 20-person team by the end of the year.
Time To Freelance?
In the past year, Upwork (UPWK) found 60 million Americans performed freelance work, or around 39% of the US workforce. As more and more workers become freelancers, Wingspan is not the first company to identify the need for tools to help smooth the transition.
Other startups like Gusto, Deel, and Payable, along with major players like Square-parent Block Inc. (SQ), are developing similar products. But Wingspan’s CEO Anthony Mironov says Wingspan’s holistic nature sets it apart: “Hundreds of companies do bits and pieces of what Wingspan does.”
Freelancing can be daunting. It typically requires you to shoulder administrative tasks such as invoicing, paying your taxes, and accessing health benefits. But, with tools like Wingspan on the horizon, the self-employed life might just be about to get a little easier.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23031703