Jobster Seeking More Funding, But Reported $11 Million Loss in 07′

Posted Mar 17, 2008

Jobster is a social network and online recruitment web site that started in 2004.  Every time a user creates an account on Jobster, they add skill tags to their profile and show their availability which includes job hunting, happily employed, etc.  I was just looking through some of the profiles on Jobster and it seems like that this is a good way for recruiters to network with potential prospects.  However, one of the flaws with Jobster’s revenue model is that they made job postings free. 

Maintaining Jobster is not cheap.  Since 2005, the company had raised $48 million.  The company is burning $1 million per month.  The company had $11 million in losses in 2007.  And the company has $3 million left.  The founder and CEO of the company, Jason Goldberg left last year as well.  Now that the company is under new management, they are looking to raise more money and try to get the recruitment social network back on track.

Previous investors include Ignition Partners, Mayfield Fund, Trinity Partners, and Reed Elsevier Ventures.  A few months after the social network launched, Jobster acquired WorkZoo.  Jobster also acquired Jobby, a startup that matched candidates to jobs through the use of tags.

If the Seattle, Wash. does receive additional funding, then one of their first priorities on the agenda should be cost cutting and talent management.  The new management should be focusing on also making Jobster in a competitive position to be able to take on Monster or CareerBuilder.

[Information Source: ERE]