Member-only story
Fiverr: Growth in the Gig Economy
Investment Thesis: Covid-19 has created massive tailwinds for the freelance economy and Fiverr (FVRR) is in a position to be a major beneficiary. Fiverr’s stock price has soared 700% YTD but only sits on a $6bln market cap compared to its $100bln TAM. Fiverr differentiates itself in a highly competitive and fragmented market by countering the traditional job search process and putting freelancers in charge. If Fiverr can leverage this and successfully penetrate the small-medium businesses (SMBs) market, I see Fiverr capturing a significant portion of the TAM representing 100–300% upside from current levels within 3–5 years.
The Gig Economy
The gig economy consists of independent contractors, temporary workers, and contract workers where workers possess a high degree of autonomy, are paid by tasks, and maintain short-term relationships between themselves and their clients.
Freelance Forward: 2020, an annual study conducted by Upwork, reported that freelancers contributed $1.2 trillion to the U.S. economy in 2020, representing 5% of United States GDP and a 22% increase since 2019. The total number of freelancers increased to 59 million, or 36% of the American workforce, compared to 57 million in 2019.
The pandemic has forced society to adapt to remote work and many have shifted to freelancing. 75% of…
