PayScale Raises $2M for Salary and Compensation Site
Xconomy has learned that Seattle-based PayScale has raised $2 million in a Series C round of venture funding. The investors in this round were not disclosed. A company spokesman confirmed the deal.
PayScale was founded in 2000 by Joe Giordano, and in the past has been backed by Fluke Venture Partners, Madrona Venture Group, Trinity Ventures, and other investors. The website launched in 2002, and provides online compensation data for employees, businesses, and job-seekers.
PayScale’s business model differs from the usual advertising-revenue plan. As CEO Mike Metzger explained last fall, the company uses a “give-get” model in which customers provide information about themselves in exchange for salary information about workers in any given job sector. PayScale also packages aggregated information and sells it to businesses. As for future revenue streams, Metzger said back in September that he wouldn’t rule out “very focused and targeted” advertising.
The company sent the following statement via e-mail: “PayScale continues to build momentum as the leader in real-time, targeted compensation data for consumers and businesses.”
PayScale had record sales and user traffic in the fourth quarter, the company said. Almost 8 million unique visitors came to the company’s sites in the period, and it added new customers such as Dole Foods, General Dynamics, Merck, the U.S. Postal Service, and Zappos.com. PayScale received the new funding to continue its growth, the company said.