Field Nation Raises $30 Million of Private Equity Funding, Bringing More Capital to WIP Space

Field Nation

Work intermediation platform Field Nation announced Thursday it closed a $30 million investment round led by Susquehanna Growth Equity (SGE). This funding event represents strong investor confidence in Field Nation’s potential, as well as a continuing flow of capital into the emerging work intermediation platform (WIP) space.

From a services procurement and contingent workforce management standpoint, this investor backing further validates our view that WIPs will continue to evolve to become a significant part of the future contingent workforce ecosystem.

Spend Matters has been covering the emerging WIP space, which includes Field Nation. We last reported on the company after its acquisition of FieldSolutions in May. Field Nation, based in Minneapolis, with more than 100 employees, describes itself as a “complete freelancer management system (FMS) and SaaS-based project-management solution.” The company reported $62 million in marketplace transactions in 2014, with about 1,000 business clients and a network of more than 65,000 service providers (i.e., contactors). Field Nation also reports that, since its founding in 2008, the business has been growing profitably by at least 65% annually.

Field Nation: A Unique WIP

Field Nation is a notable WIP for a number or reasons. First, it is one of the few platforms that intermediate engagements of contingent workers to perform on-location work. Second, it is a work platform business that appears to be successfully evolving its business model.

Starting as a marketplace through which companies could engage independent technical field service contractors offering their services, the company has continued to develop its platform. For example, Staffing Industry Analysts has included Field Nation in its shortlist of FMS, signifying that the platform has also geared itself toward supporting individual enterprises to manage their own private contractor networks.

“The broader platform extends the marketplace through Field Nation Complete™, a SaaS solution that delivers a complete work management solution when organizations require the combined experience of their internal and external workforce,” the company said Thursday in a press release announcing the funding event.

Field Nation also distinguishes itself as a rare case of a growing platform business that has been self-funded for over 7 years since its founding. “Bucking current funding trends, the company first built a profitable business before seeking external investment,” it said in the press release. Competitor Work Market, for example, was founded in 2010 and has raised $35 million in capital in 3 rounds since then.

More Detail on the Field Nation Funding

The funding from the latest investment round will be used, the company said, in 3 main areas:

  1. “To meaningfully increase product development and marketing efforts in existing markets,”
  2. to “promote its SaaS-based total workforce management solution, Field Nation Complete,”
  3. and “expand its service offerings into new vertical markets”

It is this last targeted area of investment that is perhaps the most interesting. Field Nation, like its 2 direct competitors in the technical field services segment, Work Market and Onforce (now a part of Beeline), has been attempting to extend its FMS offerings to additional vertical markets. It now appears that Field Nation will get a boost in pursuing its expansion.

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