Contra Raises Capital, Remains Commission-Free | Independent Worker Network

Contra Introduces Commission-Free Payments for Independent Professionals

Contra, a professional networking platform designed for independent workers, has announced a new payment system. This updated model allows users to receive payments for their services directly through Contra without incurring any commission fees.

Securing Series B Funding

This feature launch coincides with the company’s successful acquisition of $30 million in Series B funding. The investment was spearheaded by NEA, with additional participation from Unusual Ventures and Cowboy Ventures.

Both Unusual Ventures and Cowboy Ventures had previously invested in Contra’s $14.5 million Series A funding round earlier in the year. According to Ben Huffman, Contra’s founder and CEO, this latest funding brings the company’s total funding to just under $45 million.

Empowering Independent Workers

Contra offers a suite of tools to assist independent professionals in establishing a strong professional presence and efficiently managing their workflow.

This includes handling inquiries, defining project scopes, finalizing contracts, and receiving payments – all without the substantial fees, potentially exceeding 20%, often charged by other platforms for independent work, Huffman explained.

Growth Fueled by Pandemic Shift

The new funding provides Contra with the resources to collaborate with Ann Bordetsky, partner at NEA, and to capitalize on the significant increase in user growth observed following the pandemic.

More individuals have embraced independent work, with over 50% reporting a shift to independent roles at the pandemic’s onset. Consequently, over 1 million people have joined Contra to either find work opportunities or engage talent, Huffman stated.

Building Trust and Facilitating Payments

“Our intention has always been to implement this system,” Huffman noted, “but we prioritized ensuring secure client payments and establishing trust within the network.”

With a user base spanning 139 countries, and recognizing that many independent workers lack traditional benefits like stock options, Contra aims to facilitate access to earned value and streamline the payment process.

State of Independence Report Findings

A survey of over 10,000 independent workers conducted earlier this year for Contra’s inaugural State of Independence report revealed that freelancers highly value the flexibility, autonomy, and financial advantages of independent work.

Notably, 86% of respondents reported working fewer than 40 hours per week. Furthermore, the platform’s revenue model, based on per-project fees rather than hourly rates, allows workers to achieve comparable earnings with a reduced project workload, Huffman added.

Future Plans: Hiring and Product Innovation

The newly acquired funding will be allocated towards expanding the team and continuing product development, with new features slated for release in early next year.

NEA’s Perspective on the Independent Work Trend

Ann Bordetsky of NEA expressed her interest in the growing trend of independent work, having spoken with numerous individuals who desired this work style but were dissatisfied with existing career-building marketplaces.

She observed that Contra was emerging as a preferred resource for “the Gen Z digital worker,” highlighting the company’s effective use of platforms like TikTok to cultivate an audience.

Vision and Support for Contra

“Ben understands these challenges intimately,” Bordetsky added. “His creative vision for the platform’s potential, coupled with his practical understanding, was particularly impressive. Ben possesses the foresight to lead in this space, and NEA is committed to supporting Contra’s continued success.”