Vangst Secures Additional 19 Million to Place Employees in the Growing Cannabis Industry
In the current tight labor market, various vertical labor marketplaces have been gaining traction by focusing on specific industries. These platforms are attracting significant funding as investors recognize the potential for growth in these niche markets.
A Closer Look at Trusted Health and Seasoned
Trusted Health, a healthcare staffing platform, raised $149 million in funding last November. Meanwhile, Seasoned, a hiring platform for restaurant workers, closed on nearly $19 million around the same time. These investments demonstrate the confidence investors have in the vertical labor marketplace model.
The Cannabis Industry: A Growing Opportunity
Investors are also placing bets on platforms focused on the cannabis industry. With an estimated 320,000 people already working in this sector as of last fall – a 32% increase from the previous year – there is undoubtedly a high demand for talent. An investor syndicate led by Level One Fund recently injected $19 million into Vangst, a Denver-based company that connects short-term and full-time workers with cannabis companies across the U.S.
Understanding Vangst’s Business Model
Vangst has developed a robust business model that includes multiple revenue streams. According to founder and CEO Karson Humiston, the platform currently features 500 "gigs" per week that are filled on average within 48 hours. These individuals are treated as employees, not contractors, which sets Vangst apart from other staffing companies.
Breaking Down Vangst’s Revenue Streams
Vangst generates revenue through:
- Hourly wages: The company pays its workers an hourly wage for each hour worked.
- Service fees: A service fee is charged to the client (cannabis company) for each worker assigned to their project.
- Benefits and taxes: Vangst also provides benefits, including health insurance, 401(k), and paid time off, to its workers.
Expansion Plans
Humiston envisions Vangst expanding into international markets in the future. To this end, the company has plans to spend time in Barcelona with one of its investors, Casa Verde Capital, which is investing more money in European startups these days. However, the team recognizes that they have much to learn about international business needs and regulatory requirements before making their move.
The Future of Vangst
As Vangst continues to grow and evolve, it’s clear that the company will remain a key player in the cannabis industry. With its innovative business model, commitment to worker benefits, and plans for expansion into new markets, Vangst is poised for success.
The Rise of Vertical Labor Marketplaces
Vertical labor marketplaces like Trusted Health, Seasoned, and Vangst are redefining the staffing industry by focusing on specific niches. These platforms have attracted significant investment as investors recognize their potential for growth in a tight labor market.
Investing in Niche Markets
Investors are increasingly turning to niche markets like healthcare, cannabis, and restaurant workers. By doing so, they’re betting on companies that can provide specialized services and fill the gaps left by larger generalist platforms.
Conclusion
In conclusion, vertical labor marketplaces have found success amidst a tight labor market by focusing on specific industries. As investors continue to recognize the potential for growth in these niche markets, it’s likely we’ll see even more companies emerge with innovative business models that cater to unique needs.
Related Topics
- Althea
- Cannabis
- Casa Verde Capital
- Delta Emerald Ventures
- Denver
- Lerer Hippeau
- Phyto Partners
- Recruitment
- Startups
- Vangst
- Venture
- Venture capital
