Fiverr to raise $100m at $600m valuation

Micah Kaufmann Photo: Omer Hacohen

The Israeli online freelancer platform has filed a prospectus for a Wall Street IPO.

Israeli online freelancer platform Fiverr has published an updated prospectus for its planned Wall Street Initial Public Offering (IPO). The company plans raising $100 million at a company valuation of $600 million, after money. This is lower than previous reports, which suggested the company was seeking a valuation of $800 million.

The company will sell 5.3 million shares at $18-$20 per share and the underwriters will have an option to buy an additional 750,000 shares, if the offering is successful. After the offering there will be 31 million shares, meaning that the public will hold a 17% stake of the company.

The company also published that the current shareholders are: BVP Group (14.9% and 12.4% after the offering); Accel (12.1% and 10% after the offering); Square Peg Capital (11.3% and 9.4% after the offering); and Qumra (7% and 5.8% after the offering). The company's founders CEO Micha Kaufman with Shai Wininger, hold 9.3% and 6.8% respectively, which will fall to 7.7% and 5.7% after the IPO.

Fiverr is being represented by Advs. Shachar Hadar, Itay Frishman, Miri Shalit and Elad Ziv from Meitar Liquornik Geva Leshem Tal law firm.

The prospectus shows annual growth rates of over 40%. In the first quarter of 2019, revenue totaled $24 million, 42% more than in the first quarter of 2018. Revenue totaled $75.5 million in 2018, representing growth of 45% over 2017. 53% of revenue is from the US and 20% from Europe. 70% of revenue comes from English speaking countries - the US, Canada, UK, Australia and New Zealand), and the company plans to translate its site to additional languages. Fiverr is not yet profitable.

Fiverr has developed an online platform in which freelancers offer services in more than 200 categories in the gig economy, among them graphic design, marketing and communications, writing, translation, copywriting, and software development. No single category contributes more than 15% of Fiverr's revenue. At first, all services via Fiverr were offered for $5. Later, freelancers were enabled to offer services at higher prices. Fiverr receives a fee for each deal, from both the service provider and service buyers.

Published by Globes, Israel business news - - on June 3, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Micah Kaufmann Photo: Omer Hacohen
Micah Kaufmann Photo: Omer Hacohen
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