In October, 7GC portfolio company The Mom Project announced an oversubscribed $80 million Series C funding round led by Leeds Illuminate, a women-led growth equity investor launched last year with a core focus on education and workforce-development companies.
The round was composed of $60M million in equity and $20 million in debt financing from Silicon Valley Bank. Leeds Illuminate commented to the WSJ on their choice to invest:
“We are big believers in flexible work and contingent work models that give workers increased autonomy and can improve who shows up and increase income opportunities.”
Since 7GC invested in the business in 2020, the company has doubled its user base on the platform to 500,000 (up from 275,000). This rapid growth has translated into top-line performance for the business, with revenue expecting to surpass $55 million in 2021.
The funding comes at a pivotal time for women in the U.S workforce. Per the company’s blog, 2.3 million women left the U.S. workforce in 2020 leading to the lowest levels of women in the labor force since the 1980s. U.S Vice President Kamala Harris declared the mass exodus of women from the workforce “a national emergency.”
The company has seen these trends first-hand on their platform, with the number of jobs on its site was more than tripling at the pre-pandemic peak, indicating a continued supply imbalance in the job market. On the demand side, the number of moms signing up for its service climbed 69% above pre-pandemic peak levels and 80% more candidates actively bidding on available jobs in the same period.
“Women are not giving up; they want to work,” CFO and COO Greg Robinson said, adding that he believes the next six months will be a defining period for this segment of the working population.