PayScale Secures New Financing to Accelerate Growth and Expand Customer Base
Company secures new financing and achieves new records for business users and consumer traffic
Seattle - July 5th, 2011 - PayScale, Inc. today announced the company has secured additional financing to expand sales and marketing activities and continue accelerating new customer acquisition.
"PayScale has had a fantastic 18 months," said Mike Metzger CEO. "We have more than doubled our business subscription customers, significantly expanded our selling capacity, and grown our dataset. We have achieved an important scale point with the business and based on our customer traction we decided now was a good time to expand our investment in additional selling capacity."
Building on this momentum, the company has received an additional $7 million dollar equity investment to accelerate the growth of PayScale's sales team. SAP Ventures was the lead investor. Investors included: Burke Dale Victor, Fluke Venture Partners, Madrona Venture Group, SAP Ventures, and Trinity Ventures. Much of the incremental capital will be invested in expanding the sales and marketing teams and select product developments.
"Compensation is a critical component of human capital management," said Dave Hartwig, managing director, SAP Ventures. "PayScale brings a great value proposition – fresher, more granular data at lower cost – to the marketplace. Customers love it, and this capital will go towards growing more aggressively into their demand. We are excited about providing PayScale this capital to drive sales more aggressively. Demand for access to PayScale's database of profiles has been very strong."
Growth Fueled by Demand for Compensation Expertise from All Business Sizes and Industries
PayScale Insight has reached a user group of 2,300 business subscribers covering roughly 1 million employees. This is an increase of over 60 percent from a year ago. PayScale Insight is an online compensation solution that enables HR/Comp professionals, in small, medium and large companies to benchmark their workforce and align their compensation strategies with their overall business goals.
New customers include: Signature Healthcare (approximately 10,000 employees) and GE Energy (approximately 9,000 employees). In addition, the company has added 550 new small- to medium-sized businesses across all industry categories in both the United States and Canada. Many of these companies utilize PayScale's real-time and accurate data as well as the company's consulting expertise to design compensation strategies that will support and bolster business strategy.
"The growth in the PayScale business over the last year is a clear indication that companies are seeking close alignment between business planning and strategy with the compensation of their employees," said Dave Smith, Senior Vice President of Sales, Marketing & Business Development, PayScale. "While the full economic recovery remains inconsistent, businesses and organizations across the board are focusing with great clarity on issues related to salaries and compensation."
Helping Consumers Navigate the Salary Puzzle
PayScale has made a number of consumer platform advancements, including a close alignment with LinkedIn. As part of the business relationship, PayScale provides job-, location- and industry-specific compensation data for use in various products on the LinkedIn website. Using PayScale's services, LinkedIn includes salary ranges for jobs listed in the US, United Kingdom, Canada, and Australia on the LinkedIn website, allowing users to search for jobs by salary range. Salary information is also available in LinkedIn's new Career Explorer product, helping users understand what future careers might pay. Both features on LinkedIn will use PayScale's proprietary job-matching techniques to provide the most accurate estimate of salary
Additionally, PayScale now provides a Compare Employers Feature so users can view a side-by-side comparison of pay, benefits, demographics and job satisfaction of a specific job title at a specific company vs. that company's competitors. For example, as a "software engineer," which company is the best fit for you?
PayScale's dataset now exceeds 29 million unique career profiles.
Highly Relevant PayScale Reports on Compensation Topics:
The company has continued its original data publication efforts. Recent reports include:
• Technology Company Salaries and Job Satisfaction
• Healthcare Hotspots
• Second Annual College Return on Investment (ROI) Report
• 2011 Salary Madness Championship Brackets
• Lights, Camera, Action: Salaries Behind the 2011 Academy Award Curtain
• IT Startup Salary Hotspots Report
Finally, PayScale has created The PayScale Index. The PayScale Index utilizes a unique approach to trend measurement. Unlike indices such as the Consumer Price Index, which measures the prices of certain goods and services (periodically updated to reflect changes in buying habits of Americans), The PayScale Index uses data on all private-sector, full-time employees working in a given time period. The PayScale Index also separately examines quarterly changes in the pay of employed workers across 15 private industry categories, 20 metropolitan areas, and across company sizes of less than 100 employees, 100-1,500 employees, and more than 1,500 employees.
About SAP Ventures
SAP Ventures partners with outstanding entrepreneurs worldwide to build industry-leading businesses. We are funded by SAP AG (NYSE: SAP), the market leader in enterprise application software, and we leverage the relationship with SAP and its ecosystem for the benefit of portfolio companies. SAP Ventures invests in technology businesses that serve enterprises as customers or have enterprises as go-to market partners as well as companies that service consumers in their professional lives. Over the last 15 years, SAP Ventures has supported more than 100 companies on five continents. Past investments include Commerce One, Greenplum, MySQL, Red Hat, and WebEx. Current portfolio companies include Alfresco, Alteryx, Control4, Endeca, iYogi, LinkedIn, OnDeck, OpenX, Spring Wireless, Tealeaf, Tremor Media, and Zend. For more information, visit www.sapventures.com
PayScale.com (www.payscale.com) is the leading online provider of employee compensation data. With the world's largest database of individual compensation profiles, PayScale provides an immediate and precise snapshot of current market salaries to employees and employers. PayScale's patent-pending, real-time profiling technology collects and indexes employee pay attributes worldwide and makes this compensation data available through its online salary tools and salary benchmarking reports. PayScale was founded in 2002 and is headquartered in Seattle. For more information, visit: www.payscale.com/about.asp
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