Pangea.app, a Providence, Rhode Island-based startup, has raised a $ 400,000 pre-seed round, theinformationsuperhighway said this week. The company's new capital, which was raised as post-money SAFE, comes from PJC, a Boston-based venture capital firm and underdog labs. Previously, Pangea.app raised money from angel investors.
The company links to companies across the country on its Remote College Freelancer website. College students want paid work and resume experience, while companies need work help that students can help with, such as graphic design. Today, with colleges and universities closed due to COVID-19, students remain at home and many companies are suspicious of adding new full-time employees, Pangea.app could be found in a sweet spot market.
Some students whose work is scheduled for summer are now unexpectedly free, which may contribute to the startup's work lists. "I can't tell you how many students I have spoken to who have canceled summer internships and jobs on campus," said Adam Alpert, CEO and co-founder of Pangea.app, to theinformationsuperhighway. They find short-term, distant opportunities that suit them enable you to make a contribution to learning. "
If its marketing position matches the CEO's hopes, the company could see rapid growth. According to Alpert, the company has so far processed five contract numbers via its platform and expects to reach a gross amount by the end of summer that is a multiple of its current size.
Around 250 schools have students on the platform; 60 schools have joined in the past three weeks.
Pangaea.app makes money in two ways: it reduces transaction volume by 15% and charges some companies a SaaS fee for access to the best-reviewed student staff. The company had targeted a $ 500,000 increase, an amount Alpert is confident that its company can meet.
As the economy stutters and the venture capital world slows down, Pangea.app may have raised capital at a convenient time. Raising capital is becoming increasingly difficult as the year progresses, and it is now enough to operate without income for a year. However, it will generate a return on sales and expand its cash cushion.
Pangea.app strives for more than just growth. Alpert told theinformationsuperhighway that a number of development-oriented hires are pending for 2020, including a UI / UX designer and engineering talent. The company also plans to use its own platform in summer to employ people and accelerate its own development.
The headquarters in Providence, not exactly the center of startup gravity in the world, can have some advantages for Pangea.app. The company strives to balance profitability before moving on to the next part of its business. This is easier in Providence, where the cost of living and business is much lower than in larger startup hubs.
To update: The round was an investment before the start, not a start-up, as originally reported. The post has been corrected.