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Tech Roundup: Shiftgig sells staffing operations; separately other firms report funding rounds

April 18, 2019

Online staffing firm Shiftgig sold its staffing and national events business lines; the firm will now focus on providing software to staffing firms, the Chicago-based company reported today. Meanwhile, employment platform Spur raised $8 million in a funding round, and recruiting software provider Crelate announced a $5.3 million funding round.

Here’s more on the developments:

Shiftgig

Shiftgig is refocusing with the sale of its staffing business lines.

LGC Hospitality acquired Shiftgig’s staffing business operations in 12 markets. Separately, Headway Workforce Solutions acquired the operations, contacts and service relationships of Shiftgig’s New York market as well as its national events business line. Terms of the transactions were not announced.

Shiftgig had ranked as one of the largest B2B human cloud firms, according to Staffing Industry Analysts research. Its online staffing business matched workers with hirers as both as employees and independent contractors. Workers could sign up for jobs directly online through IOS and Android apps. The business focused on the food services, hospitality and retail industries as well as provided workers for experiential and brand marketing, conferences, and trade shows.

The company will now market its “Deploy” and “BookedOut” online staffing software directly to staffing firms.

Deploy will allow staffing firm workers to sign up for jobs with the average assignment. Users of the app, including workers and client companies, will see the staffing firm’s brand. Deploy is based on the underpinnings of Shift gig and was launched as a separate product in February. Each staffing firm using the software would have access only to their workforces and clients.

Shiftgig’s business allowed clients firms to hire workers as either W-2 employees or independent contractors. With Deploy, firms will primarily be onboarding workers as W-2 employees.

“We really think of the power of Deploy as being focused on high volume ability to really react with speed,” Shiftgig CEO Rick Bowman said.

BookedOut is an event management platform that marketing agencies, staffing firms or distributors can use to hire and manage staff for special events.

Bowman said the change in the company’s direction is a focus toward the technology that it’s been investing in since 2015.

Shiftgig has raised $56 million in capital so far. Bowman joined Shiftgig as CTO in June 2017 and took over the CEO role in July 2018 from Wade Burgess.

Spur

Spur, an employment platform connecting hourly workers and employers, raised $8 million in a Series A funding round.

The funding round was led by venture capital firm Third Prime, with participation from Mark Bezos and John Griffin, founder of Blue Ridge Capital. Spur also appointed Bezos to its board.

The Spur platform functions as the official employer of record for workplaces with hourly workers — such as hotels, restaurants and other businesses — assuming all HR and payroll functions. Businesses use the platform to schedule their employees and approve their time through Spur’s app. On the flip side, employees on Spur get access to benefits, perks, and other services specifically designed for hourly workers; such as faster pay options and paid sick leave. In addition, Spur helps workers find side gigs and other opportunities.

The company said it will use the funds to accelerate growth within the hospitality industry. Specifically, it plans to bolster its corporate and executive team, roll out the service across additional metro areas and continue development of its employment platform and products.

Spur is headquartered in Huntsville, Alabama, with offices in New York and Chicago.

Crelate

Recruiting software startup Crelate Talent received $5.3 million in funding. The company’s engineering department will use the funds to develop email and social media marketing campaigns that give recruiters the ability to track key engagement metrics; integrations with other recruiting software vendors for a full-desk recruiting experience inside the Crelate platform.

Crelate’s software utilizes a combination of customer relationship management and an applicant tracking system. The company is headquartered in Maryland but its engineering operation is in Kirkland, Washington.

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