PayScale, Inc. Continues To Build Momentum With $7 Million in Funding
Trinity Ventures leads Series B Financing Round; Fluke Venture Partners, Madrona Venture Group, and Buerk Dale Victor also invest
Seattle – October 14, 2005 – PayScale, a market leader in online salary and benefits information, today announced that it has raised $7 million in Series B funding led by Trinity Ventures. Fluke Venture Partners, Madrona Venture Group, and Buerk Dale Victor all contributors to PayScale’s initial $3.2 million in funding raised in Fall 2004—again participated in this Series B financing round. Patricia Nakache, a Principal at Trinity Ventures, will join the PayScale Board of Directors. The company will use the funds to expand the PayScale team, increase data acquisition, and accelerate development of innovative compensation products and services.
"We have a world-class team at PayScale and the support from these premier investors will allow our team to continue to meet, and expand upon, our business objectives and develop superior products and services for PayScale users," said Mike Metzger, CEO of PayScale. "The support from these investors helps further solidify the company as a market leader in the compensation and benefits arena."
PayScale hosts the largest ongoing compensation survey in the world (www.payscale.com). In exchange for a report detailing how his/her compensation compares to others in the market, individuals submit detailed, anonymous information about their jobs and workplaces.
"PayScale has created a disruptive business model," said Patricia Nakache of Trinity Ventures. "PayScale provides more accurate, fresh and detailed information than has been previously unavailable while also changing the economics of data collection. We have been impressed by PayScale’s progress and are excited to have the company in the Trinity Ventures portfolio."
"PayScale goes beyond the typical survey of surveys to solve a problem that employers and employees know exists: the need for real time compensation data," said Denny Weston of Fluke Venture Partners. "The combination of the outstanding management team and unique methodology used to collect and provide users with valuable and actionable information demonstrates the superb market opportunity that exists for PayScale."
"PayScale’s user-generated content distinguishes PayScale from the competition," said Matt McIlwain of Madrona Venture Group. "With more and more information from the offline world now coming online, the ability to provide innovative search technology and real-time analysis is just one of the differentiating benefits of PayScale’s products and services."
The algorithm used to analyze the data submitted by users is unique to PayScale. Once job seekers submit their information to PayScale, every profile undergoes up to 20 tests to check for validity including checks for consistency with salary ranges reported from reputable sources such as the U.S. Bureau of Labor Statistics, checks to identify and eliminate duplicate entries by the same individual, and checks for "internal consistency" within an individual profile.
PayScale (www.payscale.com) is a market leader in online compensation and benefit information, providing access to accurate compensation data for both employees and employers. With the ability never before available for uniquely matching job and company specific attributes, PayScale allows users to obtain an unparalleled level of compensation information, providing a precise snapshot of current market pay. The Company provides real-time pay information for employees and businesses across the globe. Launched in 2002 and headquartered in Seattle, Washington, PayScale owns the largest online database of employee salary information in the world and has a patent pending methodology for compiling and aggregating compensation data.
About Trinity Ventures
Founded in 1986, Trinity Ventures is a value-added investor that provides capital, networks and resources to early-stage software, services, communications and networked systems companies. With more than $1 billion under management, Trinity Ventures has invested in over 100 companies, including Jobster, Extreme Networks, Network Alchemy, Crescendo Communications, Forte Software, Illustra, Blue Nile, and Starbucks. Trinity Ventures has offices in Menlo Park. For more information visit www.trinityventures.com.
About Fluke Venture Partners
Fluke Venture Partners is one of the oldest and most experienced active venture capital firms in the Pacific Northwest, with a long tradition of assisting the region's entrepreneurs in building successful and enduring enterprises. Over more than two decades, and through up and down cycles, FVP has funded a deliberately diverse portfolio of promising high-growth technology, healthcare and consumer-oriented opportunities. Its team has been integrally involved in early-stage financings for such successes as Aldus, Coinstar, Eagle Hardware & Garden, Innova, Starbucks and Tegic Communications. In addition to PayScale, Inc, Fluke's current Fund includes investments in Seattle-based Klir Technologies and Portland-based Pacific Star Communications and Phoseon Technologies. For more information visit www.flukeventures.com.
About Madrona Venture Group
Madrona Venture Group, headquartered in Seattle, Wash. is a top-tier venture capital firm that brings together the resources, experience, teams and strategic relationships to build the next generation of leading technology companies in the Pacific Northwest. The firm has a ten -year track record of returns and a well-established team focused on regional investing in enterprise IT, consumer technology, wireless and networking. Portfolio companies leverage Madrona’s expansive network of relationships with technology thought leaders, established and emerging companies and channel partners, financial institutions and universities. For more information visit www.madrona.com.
About Buerk Dale Victor
Buerk Dale Victor LLC is a Pacific Northwest private equity firm dedicated to creating superior returns for our investors by partnering with emerging growth companies. With over 150 years of investment and operational expertise, Buerk Dale Victor is uniquely positioned to help entrepreneurs build successful, enduring businesses. Founded in 1999, BDV currently manages over $35 million from high net worth and institutional investors. The firm invests in growth companies across diversified stages and sectors, and currently has thirteen fund investments. BDV focuses exclusively on companies located in the Northwest, primarily in the business or consumer products/services, healthcare, retail, technology, and financial services industries. For more information visit www.bdvllc.com.
Zeno Group (for PayScale)