Pangea Closes $2M Seed Round - Student Labor Marketplace

Pangea Secures $2 Million Seed Funding to Connect Students with Freelance Opportunities

Pangea, a startup headquartered in Providence, Rhode Island, has successfully completed an oversubscribed seed funding round, raising more than $2 million. The company specializes in linking young professionals with businesses seeking freelance assistance.

Funding Details and Investors

According to Adam Alpert, Pangea’s CEO and co-founder, the initial target was $1.5 million, but investor interest resulted in a larger sum. Lister Delgado from IDEA Fund Partners spearheaded the investment.

Additional participants in this funding round included Unpopular Ventures, Brown Angel Group, PJC, and several individual investors. Previously, Pangea secured $400,000 in a pre-seed round last April.

Growth and Marketplace Performance

Pangea’s journey included participation in the Y Combinator accelerator program, where it received initial funding. To date, the startup has amassed approximately $3 million in total funding.

The company operates a marketplace designed to connect college students with companies needing their skills. Social media management and web development are particularly in-demand services on the Pangea platform.

The platform is experiencing significant growth. Gross Merchandise Volume (GMV), representing the total value of services transacted on Pangea, increased by 400% year-over-year in the second quarter of 2021.

Furthermore, the company reported a 40% rise in GMV during a four-week period in July. In March 2021, Pangea was facilitating $50,000 in monthly transactions; it is now approaching a $100,000 monthly GMV run-rate.

Valuation and Future Plans

This funding round represents a priced event, signifying Pangea’s progression beyond early-stage financing methods like SAFEs. The seed round has valued the company within the lower end of the eight-figure range.

The newly acquired capital will primarily be used to expand Pangea’s team. Currently consisting of four full-time employees, the company plans to more than double its workforce to nine individuals.

Strategic Location and Advantages

Being based in Providence, Rhode Island, offers a cost-effective operating environment compared to larger cities like New York or San Francisco. This allows Pangea to extend its financial runway.

Alpert stated that the seed funding will provide the company with “20-25 product cycles,” a unique way of expressing their projected operational timeframe. The company believes its location allows for focused development.

Providence Startup Ecosystem

Pangea is part of a growing startup community in Providence. Alpert noted a significant increase in venture-backed startups in the area over the past year, with several companies sharing the same workspace.

The company’s office was recently visited by TechCrunch, where staff and summer interns were observed collaborating.

Looking Ahead

With increased funding, Pangea is well-positioned to enhance its product offerings, scale its GMV, and extend its runway through revenue generation. The company’s progress towards a Series A funding round will be closely watched.