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Passionfruit raises $4.3m to bring freelancing to GenZ

Investors in this round: Firstminute Capital, FJ Labs and Playfair, as well as the Atomico, Accel and Notion scout networks, plus early execs/founders from Airbnb, Deliveroo, Turo, Trouva, Workday and Stripe

  • Passionfruit wants to make independent work work for anyone in Gen Z, 80% of whom want to go freelance but don’t know how to start and sustain it as a career path.
  • Passionfruit is the first to meet the full suite of needs with access to work, financial tooling and community-led upskilling, with an initial focus on marketing specialists. 87% of their specialists have never worked on a freelance platform before.
  • Passionfruit specialists work with the portfolio companies of 65 of the world’s top 100 VCs, and the business has raised a $4.3m round to accelerate growth from firstminute capital, FJ Labs and Playfair, as well as the Atomico, Accel and Notion scout networks, plus early execs/founders from Airbnb, Deliveroo, Turo, Trouva, Workday and Stripe.

Passionfruit, the GenZ freelancing platform, has closed a seed round of $3.6m, in an oversubscribed deal co-led by firstminute Capital and Playfair, with participation from FJ Labs and Portfolio Ventures. Other participants include the Atomico, Accel and Notion scout networks, as well as angels such as Mandeep Singh (Trouva), Xav Collins (Turo) and execs from Stripe, Airbnb and Workday. This follows a pre-seed round in December of $700k led by Playfair. Passionfruit is the first platform to give GenZ a genuine and robust choice between company employment and freelancing by recreating and improving the end-to-end array of services that full time work provides.

Currently, a career as a freelancer is primarily limited to those with pre-existing networks and support structures, which means the overall pool of high-quality talent that is available to businesses is unnecessarily limited. Today, freelancers spend at least 45% of their time trying to find new clients, managing administrative burdens and trying to upskill. Having to handle everything by oneself means that many simply cannot afford to leave the full-time corporate cushion, where working, learning and earning is handled centrally, even if they’re fed up in their job.

Passionfruit radically transforms the day-to-day experience of being a freelancer. Rather than scrapping around for work, managing finances in an Excel spreadsheet and feeling isolated, specialists on Passionfruit are brought briefs tailored to their skills and interests, have oversight on their annual earnings, and are part of a tightly-knit community through a near-peer mentorship program. While the initial beachhead has been in marketing specialists, over time they will expand into adjacent disciplines to meet customer demand.

Raffi Salama, co-founder at Passionfruit, says: “Instead of yet another freelancer platform that simply digitizes transactions that could and would happen without it, Passionfruit is bringing a completely new workforce to the market. Gen Z will represent 27% of the global workforce by 2025 and it has been so inspiring to see our specialists as they say goodbye to the Victorian-age structure of the 9-5, and begin a new life working on their own terms. Better still, companies love working with them this way. Smart businesses are realizing that there’s a more elastic and efficient way to manage their relationship with talent.”

Issah Abdul-Moomin, co-founder at Passionfruit, added: “To date, freelancing has been the preserve of a select group of people that have access to work through private offline networks. We are here to make it viable for the masses. Of course we’re not saying that nobody will ever work full-time again, simply that there are tens of millions of young people that would prefer to run their professional lives differently. We exist to give them that choice.”

Passionfruit was founded by Raffi Salama and Issah Abdul-Moomin, who met on Sir Martin Sorrell’s WPP Fellowship programme. Since then, Raffi became part of the launch team of David Beckham and Softbank’s new MLS franchise Inter Miami, while Issah became Corporate Development Director at Group M, the world’s largest media buying business. The startup has already gained hundreds of specialists and customers across the EU, UK and US. Passionfruit will use the new funding to expand its product offering, and expand its commercial reach deeper into ever-larger businesses across Europe and North America. Passionfruit is headquartered in London and has an office in Lisbon, Portugal.

Adriana Vitagliano, Senior Associate at firstminute Capital, comments: 

“As we look to the coming decades, corporate monogamy will no longer exist in the same way and we’re excited to see how the right platform can completely reshape the freelance economy experience. Raffi and Issah are exceptional entrepreneurs – passionate, thoughtful and incisive – and we couldn’t imagine a more perfect duo to tackle this challenge. We’re confident they’re leading the charge by democratising access to flexible autonomy for the next generation, and are thrilled to be partnering with the Passionfruit team on this journey.”

Henrik Wetter Sanchez, Principal at Playfair Capital, comments: “Raffi and Issah have an uncanny ability to appear to be working in the future. Being two steps ahead in your thinking and execution is the hallmark of founders who can not just follow, but lead category-defining shifts in industries. I could not be more convinced by their vision of a freelance-led Gen Z workforce that urgently needs a demand-led digital home to work, learn and earn. I’m delighted to see Playfair tripling down in this round and continuing to build Passionfruit with this team.”

ENDS

 

For further information contact:

Michael Stothard

firstminute Capital

michael@firstminute.capital

 

Raffi Salama

Passionfruit

raffi@usepassionfruit.com

 

Notes to Editors

About Passionfruit

Passionfruit is a London-based freelancer platform startup on a mission to make independent work work for everyone. 

Passionfruit radically transforms the day-to-day experience of being a freelancer. Rather than scrapping around for work, managing finances in an Excel spreadsheet and feeling isolated, specialists on Passionfruit are brought briefs tailored to their skills and interests, have oversight on their annual earnings, and are part of a tightly-knit community through a near-peer mentorship program. 

In contrast to the low-cost freelancing models brought to market by Upwork and Fiverr, Passionfruit is leveraging automated and community-led vetting to ensure high-quality interactions and engagement for startups and enterprises using the platform, while bringing a highly skilled Gen Z audience into the world of freelance for the first time.

www.usepassionfruit.com 

About firstminute Capital

firstminute Capital is a $315m AUM venture fund, investing in seed stage tech companies. firstminute is sector agnostic and invests across the UK, Europe and the US. Backed by over 120 unicorn founders and founded by Brent Hoberman (founder of lastminute.com, made.com, Founders Forum) and Spencer Crawley (Goldman Sachs, DMC Partners) in 2017, firstminute has invested in over 100 companies.

https://www.firstminute.capital 

About Playfair Capital

Playfair Capital is a high-conviction pre-seed fund that invests early in just six companies a year. Playfair is sector-agnostic and invests across the UK and Europe. They’ve backed the founders of more than 60 companies since 2013, including Thought Machine, Omnipresent, Mapillary (acq. Facebook), CryptoFacilities (acq. Kraken), Trouva (acq. made.com), Orca AI, Ravelin, Sprout.ai and Vinehealth.

https://playfaircapital.com/

$4.3m

Passionfruit raises $4.3m to bring freelancing to GenZ

Passionfruit raises $4.3m to bring freelancing to GenZ

By Playfair Capital20 Jul 2022