Care.com

Care.com
Type Public
Traded as NYSE: CRCM
Headquarters Waltham, MA, USA
Key people Sheila Lirio Marcelo, Dave Krupinski, Donna Levin, Zenobia Moochhala, Steve Boulanger, Caroline Sheu, Erica Scheik.
Revenue $59 million
Employees 543[1]
Slogan(s) There for you
Website http://www.care.com
Launched May 2007[2]

Care.com is a public corporation headquartered in Waltham, Massachusetts (just outside Boston), that helps families find child care, senior care, special needs care, tutoring, pet care, housekeeping, etc. The site has 9.7 million members across 16 countries,[3] and attracts 6.4 million unique visitors a month, with a new job posted every 30 seconds.[4] It has raised $111 million in venture funding[5] and went public on January 24, 2014.[6]

History

Sheila Lirio Marcelo helped start the college savings site Upromise and was vice-president and general manager of TheLadders.com. Marcelo came up with the idea for Care.com when she had trouble finding someone to help care for her first child.[7] Then her father had a heart attack while he was caring for her second child, and she had difficulty finding care for him in addition to child care.[8]

When Care.com launched in 2007, it helped customers find babysitters, tutors, pet care and senior care.[9] The site has since expanded to offer other services, such as housekeeping[10] and care for military families[11] and special needs children and adults.[12] Users can search, post jobs and look at caregiver profiles for free. Then they can pay a monthly, quarterly or yearly subscription fee to contact caregivers and get background checks.[13] The site also helps people find job opportunities in their area by posting a free profile and applying to openings.[14] The company offers a babysitting rate calculator that helps parents calculate what to pay their sitter.[15]

Care.com is also offered as an employee benefit by 150 companies and organizations,[16] such as Google and Facebook.[17]

It expanded its online marketplace into the United Kingdom in April 2012,[18] followed after by Canada.[19] The company debuted Karoo, a private mobile social network that connects families and caregivers, in September 2012.[20]

In December 2012, Care.com launched Care.com Recruiting Solutions to help care-related businesses hire caregivers and fill staff openings through the site.[21]

In June 2013, Care.com and Knowledge Universe, a company that runs child care centers throughout the country, announced a partnership, where Care.com corporate clients will have access to KU's facilities for backup care.[22]

Acquisitions

In August 2012, Care.com acquired Breedlove & Associates, a provider of household payroll, tax and compliance services for caregivers and families.[23] Based in Texas, Breedlove is the nation’s largest nanny payroll firm, processing more than $20 million in payroll per month for over 10,000 clients.[24]

In July 2012, the company acquired Besser Betreut GmbH, a Berlin-based online care destination with customers in more than 15 countries, to increase international presence.[25]

In December 2012, Care.com purchased Parents in a Pinch, a company that provides backup child and adult care services, such as when a nanny calls in sick.[26]

In July 2014, Care.com purchased Citrus Lane, a company that offers subscription-based toy packages for families. [27]

Funding

In October 2006, Care.com received $3.5 million in Series A funding from Matrix Partners, with Reid Hoffman, co-founder of LinkedIn, also participating in that round.[28] It was followed soon after by another $2 million.[29]

In 2008, the company brought in $10 million[30] with Trinity Ventures.[31]

In October 2010, the company raised $20 million from New Enterprise Associates, along with previous investors.[32]

In October 2011, the company received $25 million in a fourth round of venture capital funding, from a new partnership with USAA, a financial services and insurance provider that focuses on military families and veterans.[33]

In August 2012, the company raised $50 million in its fifth round of venture capital funding, led by Institutional Venture Partners (IVP), bringing the total to $111 million.[34]

Controversy over the Idea

Immediately prior to founding Care.com Marcelo was an Entrepreneur in residence at Matrix Partners. While there, she and Matrix partner Nick Beim met with the founders of Sittercity.com and Sitters.com, two existing websites for finding caregivers which had been founded years earlier. The purpose of the meetings were to discuss a potential investment and bringing Marcelo in as CEO.[35] Matrix Partners did not invest in either firm and, months later, Marcelo would found Care.com and receive $3.5 million in Series A funding from Matrix Partners, with Reid Hoffman, co-founder of LinkedIn also participating in that round.[36]

The situation has been cited as a noted example of VCs misleading entrepreneurs they meet with and using the information for their own benefit against the entrepreneurs.[37] Mike Cravens, founder of Sitters.com, is quoted as saying that the meetings Marcelo and Beim had with him "were more than just a couple of meetings... the reality is that they did a deep dive into my company and then used that information to jump-start Care.com". Cravens furnished the Boston Globe with emails from Marcelo in which she tells Craven that she would not entertain starting her own business which would compete with Sitters.com.[38]

Anne Raimondi, a spokesperson for Matrix, responded that: “We can appreciate that the companies in question do not like competition, but we do not believe that their claims of unfair treatment are at all merited because both Sheila and we said from the earliest discussions with these companies that we were considering competitive options and not to share any information with us that they were not comfortable sharing.”[39]

IPO

Rumors started in April 2013, when Care.com hired veteran public company Chief Financial Officer (CFO) John Leahy as its new CFO, raising speculation about an upcoming IPO. Leahy previously spent five years as CFO of iRobot and held CFO positions at three publicly traded companies prior to that.[40]

In November 2013, Care.com filed for an Initial Public Offering with Morgan Stanley, BofA, Merrill Lynch and J.P. Morgan as the joint book-running managers, and Allen & Company LLC and Stifel as senior co-managers.[41]

In December 2013 details of the IPO were first revealed,[42] with January 2014 reports saying that the company planned to raise $85.6 million[43] by offering 5.35 million shares, at $14 to $16 each,[44] on the New York Stock Exchange under the symbol "CRCM".

On January 23, 2014, 5.35 million shares were priced at $17.[45]

Care.com went public on January 24, 2014, with shares climbing to $22.55, up about 30 percent from its initial pricing.[46]

It was the first Boston venture-funded technology company to go public in almost two years.[47]

Care.com's previous CFO, John Leahy, left after he felt that the IPO was "complete".[48]

Awards

In 2013, BostInno named Care.com to its 50 on Fire list.[49]

In 2013, the Care.com app, Karoo, received a Webby Award, under the social (handheld devices) category.[50]

In 2012, it was named one of the Top Places to Work by the Boston Globe.[51]

In 2012, the Boston Business Journal named it one of the Best Places to Work.[52]

In 2011, Care.com topped the list of the Fast 50 Asian American Businesses in the US.[53]

The company won the 2007 Stevie Award for Women in Business for best new company.[54]

References

  1. ↑ Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M," Boston Business Journal, January 10, 2014.
  2. ↑ Om Malik, "Reid Hoffman invests in Care.com," Gigaom, July 30, 2007.
  3. ↑ Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M," Boston Business Journal, January 10, 2014.
  4. ↑ Rebecca Grant, “Care.com raising $80M IPO to capture early (and massive) care market,” Venture Beat, December 12, 2013.
  5. ↑ Brian Womack, "Care.com Raises $50 Million in Fifth Round of VC Funding," BloombergBusinessweek, August 7, 2012.
  6. ↑ Jordan Graham, "Experts: Care.com IPO shows Boston’s Web savvy," Boston Herald, January 24, 2014.
  7. ↑ Beth Pitts, "Sheila Marcelo, Founder & CEO, Care.com, on Raising $111m," The NextWomen magazines, February 5, 2013.
  8. ↑ Susan Chaityn Lebovits, "Tapping Web of caregivers," Boston Globe, December 9, 2007.
  9. ↑ Dan Kaplan, "Care.com, one-stop shop for child, pet, and elderly care," VentureBeat, August 1, 2007.
  10. ↑ Cindy Atoji Keene, "Online solutions for real life hassles," Boston Globe, May 19, 2013.
  11. ↑ Michael Schindler, "Care.com Helps Solve Military Family Needs," Seattlepi.com, May 20, 2013.
  12. ↑ Kyle Alspach, "Care.com files confidentially for IPO next year (report)," Boston Business Journal, November 25, 2013.
  13. ↑ Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M," Boston Business Journal, January 10, 2014.
  14. ↑ Daryl Nelson, "Care.com: Is it the Craiglist of the future?" ConsumerAffairs, January 21, 2013.
  15. ↑ April Rueb, “Paying Your Babysitter,” Parents Magazine blog, April 17, 2011.
  16. ↑ Michael B. Farrell, "Care.com, a site for caregivers, aims at Wall Street," The Boston Globe, November 26, 2013.
  17. ↑ Serena Saitto & Lee Spears, “Care.com Said to Pick Morgan Stanley as Lead Bank for IPO”, Bloomberg.com, August 7, 2013.
  18. ↑ Olivia Solon, “Carer marketplace Care.com launches in UK”, Wired UK, April 19, 2012.
  19. ↑ Jamillah Knowles, "Online care-giving firm Care.com scores $50m round to fuel international expansion," The Next Web, August 7, 2012.
  20. ↑ Sarah Perez, “Care.com Debuts Karoo, A Private Mobile Social Network For Families & Caregivers,” TechCrunch, September 18, 2012.
  21. ↑ Andrew Karpie, “Care.com’s New Online Recruiting Platform. Why Should We Care?,” Staffing Industry, February 8, 2013.
  22. ↑ Robert Goldfield, "Child care for working parents just got a little easier," Portland Business Journal, June 3, 2013.
  23. ↑ Chris Reidy, “Care.com acquires Breedlove & Associates,” Boston Globe, August 21, 2012.
  24. ↑ Kyle Alspach, “Care.com acquires payroll biz,” Mass High Tech, August 21, 2012.
  25. ↑ Brian Womack, “Care.com Acquires Besser Betreut as Website Expands Internationally,” Bloomberg.com, July 11, 2012.
  26. ↑ Chris Reidy, “Care.com buys Parents in a Pinch,” Boston Globe, January 15, 2013.
  27. ↑ "Care.com acquires Citrus Lane", Care.com, July 17, 2014.
  28. ↑ Om Malik, “Reid Hoffman invests in Care.com,” GigaOm, July 30, 2007.
  29. ↑ Matt Marshall, "Caring.com, a site for caregivers, to launch this week," VentureBeat, September 20, 2007.
  30. ↑ James M. Connolly, "Care.com raises $25 million with insurer USAA as corporate VC," Boston Business Journal, October 12, 2011.
  31. ↑ "Care.com, Inc. Obtains $9,999,900 New Financing Round," Xconomy.com.
  32. ↑ Leena Rao, "Care.com Raises $20 Million To Connect You To Nannies, Babysitters And Caregivers," TechCrunch, October 12, 2010.
  33. ↑ James M. Connolly, “Care.com raises $25 million with insurer USAA as corporate VC,” Boston Business Journal, October 12, 2011.
  34. ↑ Brian Womack, “Care.com Raises $50 Million in Fifth Round of VC Funding,” BloombergBusinessweek, August 7, 2012.
  35. ↑ "Websites’ rivalry provides lesson about sharing strategy". Boston.com. Retrieved 14 July 2013.
  36. ↑ Om Malik, “Reid Hoffman invests in Care.com,” GigaOm, July 30, 2007.
  37. ↑ "Quora: What are some mind blowing stories about VCs lying to founders". Quora.com. Retrieved 7 January 2014.
  38. ↑ "Websites’ rivalry provides lesson about sharing strategy". Boston.com. Retrieved 14 July 2013.
  39. ↑ Scott Kirsner, "The Backstory: On Care.com, Sittercity, Entrepreneurs, and Entrepreneurs-in-Residence," Boston.com, November 23, 2009.
  40. ↑ Ki Mae Heussner, “Care.com sparks IPO speculation with hire of veteran public-company CFO,” GigaOm, April 9, 2013.
  41. ↑ Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M," Boston Business Journal, January 10, 2014.
  42. ↑ Rebecca Grant, “Care.com raising $80M IPO to capture early (and massive) care market,” Venture Beat, December 12, 2013.
  43. ↑ Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M," Boston Business Journal, January 10, 2014.
  44. ↑ Ben Fox Rubin, "Care.com Sets IPO Range at $14 to $16 a Share," Wall Street Journal, January 10, 2014.
  45. ↑ Kyle Alspach, "Care.com prices IPO above forecast, ends Boston's VC-backed tech IPO drought," Boston Business Journal, January 23, 2014.
  46. ↑ Russ Britt, "Care.com shares surge by a third on care finder’s first day of trading," MarketWatch, January 24, 2014.
  47. ↑ Kyle Alspach, "Care.com sets IPO share range at $14-$16; could raise up to $86M," Boston Business Journal, January 10, 2014.
  48. ↑ http://investors.care.com/investors/Press-Releases/Press-Release-Details/2014/CARECOM-ANNOUNCES-CFO-TRANSITION/default.aspx
  49. ↑ Walter Frick, "Introducing the 50 on Fire Finalists for Tech, Marketing & Advertising, and Healthcare & Medicine," BostInno, February 20, 2013.
  50. ↑ The 17th Annual Webby Awards. The Webby Awards Homepage.
  51. ↑ "Top Places to Work 2012," The Boston Globe.
  52. ↑ George Donnelly, "BBJ honors Boston's Best Places to Work," the Boston Business Journal, June 5, 2012.
  53. ↑ Fast 50 Asian American Businesses Post Enormous Growth in a Challenging Economy," US Pan Asian American Chamber of Commerce Education Foundation (USPAACC) website.
  54. ↑ Susan Gunelius, “Stevie Awards for Women in Business Announce 2007 Winners,” WomenonBusiness.com
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