Danish startup Colego, which provides a marketplace for hiring businesses to bid to complete a variety of tasks, has announced that they have concluded a deal for $2 million in Series A funding from Northcap and that they are moving southward, entering the German market. Colego has attracted 50,000 users since the service launched back in 2012, which is an impressive total when you consider that they had no prior external investment, but they are now ready to go international. Colego reports that Hamburg will be the first German city that they target.
Colego functions by allowing users to search for a particular category and to then submit tasks, whether related to gardening, bookkeeping, auto-repair, legal services, or other area, describing in detail the work that the user needs completed. Users are not immediately connected with bidders, however, as Colego takes applications, verifies the task, and then submits it to companies that meet a certain quality and set of requirements. From there, the users receive 3 free price-quotes from interested contractors and move to negotiate the terms. They are not stuck if they decide that they do not particularly like any of the offers, as they can simply contact Colego and cancel the process. The search aspect is free to users, but Colego tells me that they generate revenue by taking a lead-generation fee from each company that chooses to bid on a particular task.
Colego says that they currently cover 50 professions, offering tasks to 1,700 businesses around the country.