Collective Benefits, a new British recruitment startup focused on self-employed workers, has clinched 3.3 million pounds ($4.27 million U.S.) in seed funding.
The round was led by Stride.VC, a backer of Zoopla and of its founder Alex Chesterman’s new business Cazoo. The round also included Delin Ventures and Insurtech Gateway and angel investors that have experience investing in gig economy businesses like Uber and Deliveroo.
Collective Benefits, a gig economy platform aimed at self-employed workers, offers users access to employment benefits that full-time workers receive, including sick pay, leave and mental health support. Its data shows that 96% of U.K. freelance workers don’t have any type of income protection and 93% don’t have health or critical illness cover.
The platform is expected to exit Facebook’s London startup accelerator programme LDN_Lab next month.
“There are six million self-employed workers in the UK, which includes both higher-paid freelancers and gig economy platform workers. Yet, neither group typically has a safety net — no holiday pay, no family leave, no mental health support, not even paid sick days,” said Anthony Beilin, CEO of Collective Benefits. “We are building Collective Benefits so that the gig economy workers are covered by the same protections typically reserved for full-time employees.”