Henrico County-based SnagAJob.com has received a $27 million investment led by a California-based venture capital firm.
The investment will help SnagAJob, an online job-search company and software developer, expand its operations, increase its marketing and possibly make acquisitions, the company's top executive said Wednesday.
The investment is led by August Capital, a Silicon Valley-based venture capital firm whose partners have been founding investors in companies such as Microsoft, Sun Microsystems and Skype.
"It really allows us to continue to put the foot on the pedal in building out our entire team, especially the sales team," said Shawn Boyer, SnagAJob's founder, president and chief executive officer.
"It also allows us to ramp up what we are doing from a marketing perspective, both in terms of marketing to employers and to employees," he said. "It also gives us money on the balance sheet to potentially do some acquisitions."
In November, SnagAJob announced plans for a major expansion, including nearly doubling its staff. Now at about 210 employees, the company expects to reach a headcount of more than 300 by the end of this year, Boyer said.
The company is still hiring at a "rapid rate" for sales jobs, and it has openings in its product and engineering department, and marketing and finance, he said. "Really, it is across the board."
SnagAJob also is planning to move into a larger office space than its current 35,000-square-foot headquarters. It plans to remain in the Innsbrook Corporate Center office park in western Henrico, Boyer said.
As part of the investment deal, SnagAJob is expanding its board of directors from five to seven members. Eric Carlborg, an August Capital executive who focuses on later-stage growth companies, will join the board as its sixth member. The seventh member has not been named.
Other private equity funds that were part of this investment and previous rounds of funding include Adams Street Partners, Baird Venture Partners and C&B Capital, SnagAJob said. Those firms committed a total of $14 million in earlier rounds of funding.
The latest round of funding gives August Capital "a significant" ownership interest in the company, Boyer said. He declined to comment on specifics of the ownership structure now.
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August Capital manages about $1.3 billion and has made investments in more than 75 technology-related companies. The companies it has backed have an aggregate market capitalization of more than $250 billion, generate more than $75 billion in annual revenue and employ about 250,000 people.
SnagAJob's job-search website focuses on hourly jobs. It has about 250,000 jobs listed and about 28 million registered users.
The company also has been expanding its product portfolio into software that helps businesses manage their workforce recruiting, training and assessment. It is working on software that will streamline the paperwork employees fill out when they are hired by a business.
The investment also will enable SnagAJob to increase its marketing to small and mid-sized companies, Boyer said.
SnagAJob does not release financial figures, but the company said its revenue has grown about 1,185 percent in the last seven years. Boyer said the company is on pace for 50 percent growth this year over 2010.
"August Capital saw an opportunity to invest in SnagAJob, a company that already has been a tremendous resource for America's hourly workers and the employers that rely on them to run their businesses," Carlborg said in a statement provided by SnagAJob.
"In its next phase, (SnagAJob) is looking to intensify its offerings for hourly employers, and we wanted to be a part of that growth that will lead to even happier customers through a one-stop shopping human resources approach."
jblackwell@timesdispatch.com
(804) 775-8123
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