x

RSS Newsfeeds

See all RSS Newsfeeds

Global Regions

Global Regions ( XML Feed )
United Kingdom ( XML Feed )

May 22, 2015 5:07 EST

Adzuna, the UK’s fastest growing job search engine, lists over a million jobs and receives over six million monthly visits

iCrowdNewswire - May 22, 2015

Adzuna

 

Adzuna

 

 

Adzuna, the UK’s fastest growing job search engine, lists over a million jobs and receives over six million monthly visits. With a projected revenue of c. £5m in 2015, the company has been listed as one of London’s top 10 hottest start-ups and has expanded into 11 countries. Now you can join the team of former execs at eBay, Zoopla and Gumtree, in their mission to get Britain working.

The Idea

Adzuna is a search engine for job ads that lists every job, everywhere.

Our mission is to be the best place to start looking for a job. We search thousands of websites so you don’t have to and bring together millions of ads so you can find every job, everywhere, via Adzuna. We provide smarter search options and powerful data about the job market, giving you the information you need to take control of your career.

In 2011, we started working out of our bedrooms and the local pub on an idea to bring together every job, everywhere in one simple search engine, and help get Britain working. We’d worked together before at Gumtree, as well as separately at eBay, Qype and Zoopla, so we thought we knew the market and might be on to something.

Today, Adzuna has 6 million visits a month, generates millions in annual revenue, offers job search in 10 international markets and some exciting tools like ValueMyCV. We have had hundreds of pieces of national media coverage and based on our calculations we estimate that we’ve helped hundreds of thousands of people find jobs. It has been an incredible growth story and it is only just beginning.

How do we see ourselves as different from every other job website out there?

  1. We aim to list every job ad in the market listed in one simple, powerful job search engine
  2. Free salary data on thousands of job title and keyword combinations
  3. Jobsworth – salary estimates for every job ad, so you know approxmately what a vacancy pays – even when the advertiser doesn’t specify it
  4. ValueMyCV – find out what you’re worth, get a free automated CV review, advice on your next career move – and get matched to your perfect job

How do we make money?

  • From an advertiser perspective, it’s free to include your job ads on Adzuna, and we charge only for what we deliver.  We charge on a cost per click basis (like Google) to drive additional traffic to your job ads.
  • We have hundreds of current customers, including almost all of the best-known job boards in the 11 countries we operate in, who choose to advertise on our platform to get great volumes of high quality candidates to apply to their open positions.  The more relevant traffic we can send their way, the more revenue we (and they) make and the faster we get jobseekers into better, more fulfilling jobs.

What highlights have we achieved since launch?

  • Grown our team from 3 to 32 smart, talented, passionate individuals
  • Grown our business from zero to 6 million visits a month and a projected revenue of c. £5m in 2015
  • Asked by Number 10 Downing St to supply labour market data to the PM Data Dashboard
  • Featured by Wired magazine as one of London’s top 10 hottest startups
  • Expanded from the UK in 2011 to offer job search engines in 11 countries
  • Recognised by the Telegraph for our mission to get Britain working
  • Set up Adzuna Australia as a 50:50 Joint Venture with Fairfax Media – one of Australia’s leading media companies
  • Selected for the government’s Future Fifty programme, alongside the likes of Skyscanner, Transferwise, JustGiving, Zoopla, Notonthehighstreet and JustEat

Why are we fundraising?

Your investment will help us improve our service, ensuring we can offer the best possible experience to job seekers and job advertisers. This will include improving our offering on mobiles and tablets, adding new tools and extending our existing ones to help match users to a better, more fulfilling job. It will also allow us to grow our team and extend our reach through additional marketing and advertising both in the UK and internationally.  The market in which we operate is estimated to be worth $9Bn (Forbes/LinkedIn) and growing and we aim to grow our revenues substantially in the coming 4 years, so there is a lot to do.

Two years ago, we raised investment from three of the UK’s leading venture capital firms:Passion Capital, The Accelerator Group, and Index Ventures. That money has helped us expand our team, develop great features and grow our marketing spend to tell more people about our service, and we believe we’ve spent it wisely. We believe that with more money we can do even more.  Our existing investors have already committed £300,000 to the round, and we also believe that a wider group of investors can act as cheerleaders for us and help get the word out even more.

As a shareholder in Adzuna, you would be part of our company’s journey to get Britain working, and enjoy the rewards alongside our team and existing investors as our business grows.

The Market

Market

We believe that the business of matching people to jobs is enormous, with the total cost of labour being a significant chunk of the whole economy.  The global staffing market is estimated at $320Bn (Staffing Industry Analysts), of which the amount spent on online job posting advertising is around $9Bn (Forbes/LinkedIn).

Key macro trends affecting the market, that all work in Adzuna’s favour, are:

  • The shift in advertising spend from offline media to online
  • Consumers’ desires to access all job ads in one place
  • Advertisers’ desire for measurable, performance based solutions
  • Consumers desire for empowerment through transparent information (e.g. about pay)
  • The rise of ‘big data’ and technical matching solutions that replace or enhance the ‘little black book’

Competitors

We compete with many large organisations with a lot more resources than ourselves, however we consider ourselves to be nimble and technically innovative in a fast changing market.

The main types of competitors we face are:

* LinkedIn

LinkedIn has an enormous set of active user profiles, and great data about them.  It is therefore extremely strong in headhunting, especially at the high end of the market, and in working with HR in large corporates.  It’s job posting service is however very expensive and not performance-based, and still only reaches a small proportion of the market.  We also have a partnership with LinkedIn where they show Adzuna’s jobs where they don’t have enough job postings to satisfy jobseeker demand.

* Job search engines

Indeed.com, a large US-headquartered but Japanese owned company, is the largest job search engine in the world, and reputedly worth well over $1Bn.

Other smaller competitors include Jobrapido, Jobisjob, Trovit, but we’re already bigger than all of these players in the UK. In international markets we encounter others like Jobijoba (France) and Kimeta (Germany).

* Job Boards

Job boards like Monster, Reed and TotalJobs are our customers who buy traffic from us, so we do not see them as direct competitors, however they do compete with us in some ways for consumer attention in the job market or rankings in Google.

The People

Adzuna has assembled a top-class team of 32 dedicated experts in their fields (see picture) who are proud of what we do and determined to make job search better.

Founders

Doug Monro

Doug is our ‘jack of all trades’.  He takes the lead on the overall strategy of the company, product vision and business model – as well as development of team and culture.

Before starting Adzuna, Doug was COO of property portal Zoopla, now a public company worth around $1bn. From 2008 he led the growth of the team from 5 to 100 people and the site to number 2 in UK property with 5M visitors a month, organically and through acquisitions. Previously he was MD of Gumtree.com, the UK’s largest classified ads site, where he built the team and business through a fun growth ramp after acquisition by eBay in 2005.

Prior to Gumtree, Doug worked for eBay UK, Bain & Company, Unilever and also as an entrepreneur. Doug has a BA in English from Cambridge, an MBA from Kellogg, and hates to admit he is a qualified accountant.

 

Andrew Hunter

Andrew leads on all things marketing at Adzuna, taking charge of growing our audience and getting the word out there, from optimising digital marketing channels to brand and PR strategy.  He’s been to Number 10 to represent us, works closely with Doug on all the big decisions, and is a big cheerleader for company culture, including organising poker nights!

Andrew was mostly recently VP Marketing and General Manager of local review site Qype, during which time the site grew its user base to over 17M monthly unique visitors in 2 years.

Before Qype, Andrew was Head of Marketing at Gumtree.com and ran Search Marketing for the Thomas Cook Group. Andrew has a Bsc from Oxford Brookes University and is our very own SEO Ninja.

 

Management Team

George Karpodinis, Tech Lead

  • Xe.gr, Gumtree, Phd in non-linear dynamics

James Neave, Head of Data Science

  • Rightmove, Castle Trust, Cambridge Consultants, Cambridge MBA

Ievers Shier, Head of Product

  • Gumtree, Rightmove, Accenture

Matt Gregory, Head of Sales

  • Gumtree, Emap, UBM

Martin Sutherland, Head of Finance

  • eBay, Pearson, HP, Compaq, New Zealand Institute of Chartered Accountants

All permanent members of our team are compensated with stock options on top of their base salary (the total maximum pool of which is set at 10% of the company’s shares pre funding).  This means they act like owners, and their interests are completely aligned with our founders and investors.

The Financials

These notes should be read alongside the Financial Snapshot

SALES:

  • User traffic to Adzuna is the key driver of sales, as job boards pay us for traffic on a cost per click basis.
  • Secondary drivers are the number of advertisers, their job inventory, the price they bid, and having enough sales people / account managers dedicated to each country to reach clients.

USE OF FUNDS:

  • Expand team to focus on Tech ( innovation and mobile app development ), Marketing (SEO and paid marketing), International expansion.
  • Accelerate marketing spend to increase awareness of Adzuna and promote our unique features ( ValueMyCV, Mobile Apps ).

EXPENSES AND PROFITABILITY:

  • Gross Margins dip through 2015/6 as investment in marketing increases, this investment allows GM profitability to increase in 2017-9 as the cost of acquiring traffic reduces through increased free sources such as direct brand traffic, email and organic search.
  • People costs comprise majority of cost base and increase as investment made in tech, marketing, sales and international operations. Total H/C will grow from 30 to approx 80 people in 2019. Step change in facility costs from 2016 as current office space reaches capacity. 2015 costs include £100k for fund raising.

EXISTING DEBT OR EQUITY INVESTMENTS:

  • No debt finance, bank balances currently approx £1m.
  • £1.8m in VC equity raised so far from Passion Capital, Index Ventures and TAG in 3 rounds from April 2011 to April 2013.

CASH:

  • Based on current business plans business will turn cashflow positive in 2017 with no further rounds required for current business model.
  • Burn rate in 2015 is forecast at £50k per month, increasing to £100k pm in 2016 as investments in marketing and people are made. Burn rate can be closely managed as key marketing costs are variable in nature. No major capital costs are required.

The Exit Strategy

We believe that if we do a great job of delivering on our mission and therefore building a fabulous job search engine with unique technology, a large audience and satisfied advertisers, then we will all be owners in a valuable business.

Our existing investors are highly supportive of building long term value in the business, but ultimately would likely be looking for an exit in perhaps a 3 to 7 year timeframe from 2015.

These investors have previously backed a number of successful household name exits for $1 billion+ in recent years, such as Skype, Just Eat, King and Zendesk, as well as other highly valued startups like Transferwise, MindCandy and GoCardless. Zoopla, where Doug was COO for 3 years, also went public in 2014.

There are a number of large media and internet businesses in our space that have been highly acquisitive in recent years.  However, as was the case with Indeed.com which was bought by a Japanese conglomerate, acquisition offers can come from the most unlikely sources. Alternatively, in order to maximise value to shareholders, we might consider a public listing in the future. The timing of such an exit and evaluation of any offer would be decided by our experienced board, bearing in mind the interests of all shareholders.

We would encourage investment from people who do not have a definitive timescale in mind and can afford to wait for liquidity from their shares until the company reaches its full potential.  We will aim of course to make exit opportunities available if possible when they arise, but it may well be the case that there is no opportunity to realise value from Adzuna shares in the next 5 years or more.

Share Types

This company is offering Series B Preferred and B Ordinary Shares.

Series B Preferred shares are available to those who invest over £100,000 (to be held directly) and B Ordinary shares are available to anyone else who invests via Crowdcube which will be held via a nominee. The Series B Preferred Shares carry voting rights, pre-emption rights and other rights. The B Ordinary shares carry voting rights but do not carry pre-emption rights. Please see the attached documents entitled Disclosures and Nominee Structure and Articles of Association for full details of the rights attaching to shares and the implications of holding shares via a nominee.

 

Tax Relief

Adzuna has submitted their plans to raise money, details of their structure and trade etc. to HMRC and is awaiting advice on whether or not the proposed share issue is likely to qualify for Enterprise Investment Scheme (EIS) tax reliefs relating to their shares.

Tax relief is available to individuals only, who subscribe for shares in an Enterprise Investment Scheme (EIS). Relief is at 30 per cent of the cost of the shares, to be set against the individual’s Income Tax liability for the tax year in which the investment was made.

If you sell, give away, exchange or otherwise dispose of shares, tax reliefs can reduce your Capital Gains Tax bill. Your shares must meet certain conditions to qualify for these reliefs.

Please visit the HMRC website for further information on EIS tax relief

The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investors, and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.

Risk Warning

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated.

Please click here to read the full Risk Warning.

This page is communicated by Crowdcube Capital Limited and has been approved as a financial promotion by Crowdcube Ventures Limited, which is authorised and regulated by the Financial Conduct Authority. Pitches for investment are not offers to the public and investments can only be made by members of crowdcube.com on the basis of information provided in the pitches by the companies concerned. Crowdcube takes no responsibility for this information or for any recommendations or opinions made by the companies.

 

View Related News >
support