Malt Raises $97M at $489M Valuation - Developer Marketplace

The Evolving Landscape of Professional Services and the Rise of Freelance Marketplaces

For a considerable period, professional organizations have depended on contractors to supplement their workforce for assignments and projects falling outside of routine operations, yet remaining fundamentally crucial. Currently, a startup focused on streamlining the connection between skilled freelance professionals – including developers and designers – and relevant job opportunities is announcing a substantial funding injection to facilitate expansion.

Malt Secures €80 Million in Funding

Malt, a platform enabling developers, data scientists, designers, project managers, and professionals in similar disciplines to connect with short-term employment opportunities, has secured €80 million (equivalent to $97 million based on current exchange rates). The company intends to utilize these funds to broaden its operational reach into additional markets.

Sources indicate that this investment, spearheaded by Goldman Sachs Growth Equity and Eurazeo, has resulted in a valuation of €400 million ($489 million) for Malt.

Expansion Plans Across Europe and Beyond

Vincent Huguet, CEO and co-founder of Malt, alongside Hugo Lassiège and Jean-Baptiste Lemée, stated in a recent interview that the funding will support continued expansion throughout Europe. Long-term objectives include entering the U.S. market.

Currently, Malt operates in France (Paris, Lyon), Germany (Munich), and Spain (Madrid). The company plans to extend its presence to the Benelux region, followed by the U.K. and Italy.

A Growing Community and Transaction Volume

To date, Malt has cultivated a community of 250,000 freelancers, serving 30,000 businesses seeking to fill project-based roles. Notable clients include Unilever, Lufthansa, Bosch, BlaBlaCar, L’Oréal, and Allianz. The platform also collaborates with established consultancies, such as McKinsey, to facilitate talent sourcing.

Since its inception in 2013, Malt has facilitated approximately €300 million in transactions.

The Scale of the European Freelance Market

These figures represent only a fraction of the overall potential. Estimates suggest that approximately 6 million individuals in Europe currently work as freelancers, with the European freelance consulting market valued at roughly €350 billion annually.

Addressing an Opaque Market

While digital recruitment has become commonplace across many sectors, Malt is addressing a segment of the temporary employment market that has historically relied on offline networks.

“Our core strength lies in being a highly transparent marketplace, akin to a search platform like Airbnb,” Huguet explained. “We’ve built our system around a powerful search engine. In a traditionally opaque market, where both online and offline intermediaries protect their interests, we’ve made information readily accessible.” The platform also offers payment processing and advanced solutions for engaged clients.

Defining the Modern Freelancer

The term “freelancer” has evolved significantly in the technology sector, encompassing a wide range of work arrangements, from gig economy roles to fixed-term contracts. Concerns exist that companies may utilize the freelance model to avoid providing comprehensive benefits.

Malt concentrates on a distinct niche: connecting individuals with specialized, high-value technical skills to organizations requiring project-specific expertise – a challenge employers have often faced.

Differentiating from Other Platforms

“We focus on professionals commanding several hundred dollars per day, linking them with medium-sized and large corporations,” Huguet clarified, distinguishing Malt from platforms like Fiverr, which prioritize cost-effectiveness. “Employers search for specific freelancers, rather than posting tasks for freelancers to bid on.” The typical engagement duration is around three weeks, potentially extending to three months.

The Impact of COVID-19 on the Future of Work

The shift in working patterns over the past year and a half has significantly impacted Malt’s growth trajectory. The pandemic has accelerated the adoption of remote work and prompted organizations to prioritize short- and medium-term strategic goals.

This trend aligns with the types of roles Malt typically fills, and has also attracted more professionals to the platform seeking opportunities. “We anticipate being a beneficiary of the post-COVID landscape,” Huguet stated. “The traditional 9-to-5 employment model is being re-evaluated, and employers are increasingly open to engaging consultants. Hiring freezes have also contributed to our accelerated growth.”

A Shift in Worker Preferences

Furthermore, individuals who might have previously prioritized full-time employment are now more inclined to explore freelance opportunities. “Over 90% of freelancers join our platform by choice,” Huguet added.

Competition and Future Outlook

The potential for competition from established professional networking platforms, such as LinkedIn – which recently launched a freelance marketplace – remains a key consideration.

“We are monitoring LinkedIn’s progress, but believe they will encounter challenges,” Huguet commented. He noted that LinkedIn’s profiles are primarily geared towards traditional recruitment, making the matching process for freelance roles fundamentally different.

Regardless of LinkedIn’s success, its entry into the market underscores the significant opportunity, and is a key factor driving investor confidence in Malt.

Investor Perspectives

“Malt is at a critical juncture in its development. This new funding round will empower the company to scale rapidly and deliver even greater value,” said Yann du Rusquec, a partner at Eurazeo. “We are excited to collaborate with Vincent and Alexandre, and leverage the expertise of our Growth and Venture teams, along with Eurazeo’s extensive European network, to propel Malt’s future success.”

“We are pleased to support Malt in its mission to become the leading freelance marketplace in Europe,” added Alexandre Flavier, executive director at Goldman Sachs Growth Equity. “Malt is pioneering the future of work, fostering agility, innovation, and providing individuals with greater freedom and reliability. We are excited to partner with Malt’s founders, empower its community of skilled freelancers, and connect companies with the world’s top freelance talent.”