DigitalWork Secures $14.3M
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"Do-It-Yourself" business agency DigitalWork.com announced Tuesday (Nov 28) it has completed a $14.3 million round of strategic financing that will be used to fund the company's continued growth. To date, DigitalWork.com has raised $66 million in equity capital.
"This round of financing will enable us to continue on our path to profitability through focus on and solid execution of our strategic plan," said Rob Schultz, CEO of DigitalWork. "The fact that we were able to raise capital under challenging market conditions is testament to our employees, partners and investors who have dedicated their time and energy to achieving our mission."
DigitalWork postponed a planned IPO in June, and laid off 25 percent of its workforce in a strategic reorganization in July despite a very strong second quarter where DigitalWork posted a 45 percent increase in revenues and 65 percent growth in new customers over the prior quarter.
Wells Fargo & Company and VerticalNet invested in this round along with existing investors Draper Fisher Jurvetson, TL Ventures, Information Technology Ventures and PurchasePro.com. These investors join an impressive list of companies already backing DigitalWork, including Attractor Investment Management, Office Depot Inc., Mail Boxes Etc., a wholly owned subsidiary of U.S. Office Products Company, Frontline Capital, and Winstar Communications.
DigitalWork provides self-service web-based business services to the small business market. Based in Chicago, the company has developed a business-to-business service platform that connects service suppliers, business portals and small businesses. DigitalWork simplifies the execution of more than 40 critical business functions online, such as launching an integrated marketing campaign, recruiting new employees and generating sales leads.
DigitalWork's services can be accessed through its network of more than 45 portal and destination sites, including AOL, AT&T, IBM and Office Depot. In September, DigitalWork launched as a key service provider on AOL's Netscape Netbusiness small business community.