Jobster CEO Jason Goldberg likes to call his job search web site “MySpace for the workforce.” Given the company had only three million job searches for the month of June, it might be a bit of a stretch. Goldberg, of course doesn’t care, and is pushing to grow his Seattle-based startup fast.
A fresh round of $18 million in venture capital infusion (bringing the company’s total to $48 million) is going to surely help attract new customers, add features and expand internationally. The investment was led by Reed Elsevier Ventures, the VC arm of publishing company Reed Elsevier, and included existing investors Ignition Partners, Mayfield Fund and Trinity Ventures.
The service is a little different than competitors like Simply Hired and Indeed that make money off of advertising on job search pages. All of Jobster’s revenues come from its deals with Fortune 500 employers like Starbucks, Boeing and Google.
Jobster sells its web-based tools to manage finding workers, which cost between $1,000 to $9,000 per month, depending on the companies’ size. It has 400 business customers. There’s enough revenue coming in from that booming business for Jason to say the company will be profitable in the middle of next year. “Well north of $20 million in annual revenues,” is how he puts it. He also says the company’s valuation has “quadrupled over the past 18 months.”
Jason made it pretty clear that the company didn’t really need the money, and that Reed Elsevier Ventures was courting him for 4 to 6 months before he agreed. I was curious as to why take the money at all. He explained it as having lived through the bad times in the dotcom, why not raise the money while he can? Smart guy! And there’s also a slew of job search competitors out there, including MySpace’s actual job pages powered by Simply Hired, so getting big fast is a good idea.
He’s got big plans to offer service in India and China sometime next year he says. It’s ambitious, but so is the company. It already acquired 3 companies even though its just 2.5 years old, and last Thursday launched a new site, which Jason says has pushed the search stats up 50 percent from June.
The new site has got all the Web 2.0 and community-based features you’d expect from a company calling itself the MySpace of the working world. Now that Jobster’s got the new money and the new site, maybe it could come close to bringing in the users to match that moniker.