Tallinn, Estonia-based Werk, a hiring and relocation platform for skilled migrant construction workers, announced on Tuesday that it has raised $1.3M (approximately €1.23M) in a pre-Seed round of funding. The platform enables companies to hire skilled and vetted migrant construction workers, handling everything from recruitment and verification to relocation.
The startup says it will use the funds to further expand its team and focus on product development and marketing.
Werk co-founder, Martin Kalamees, says, “This first injection of capital will enable us to grow our team and enhance our technology.”
Investors in this round
The round was led by Change Ventures, one of the leading early-stage funds in the Baltics. The round also saw participation from Foundamental VC and angel investors such as Anthony Danon and Carmen Alfonso-Rico of Cocoa VC, Declan Kelly of Foreword VC, Gonzalo Manrique of Ironhack, and Andreas Klinger, On Deck CTO and Head of Remote at AngelList.
Rait Ojasaar, Investment Partner at Change Ventures, says, “From travel restrictions caused by the COVID-19 pandemic, to the war in Ukraine cutting off labour supply networks, there are a number of uncontrollable elements affecting skilled migrant workers looking for construction jobs. Werk is providing a valuable service for businesses that need labourers, as well as a safe platform for those looking for jobs outside of their native countries. We are delighted to lead this first round of investment.”
Patric Hellermann, General Partner at Foundamental, adds, “Werk is solving a huge opportunity in Europe – discovering a steady supply of skilled craftsmen, and making them mobile across borders. The kicker is that we do it compliantly and bring transparency and lower administrative burden.”
Construction labour marketplace
Founded in 2020 by Martin Kalamees, Marion Kallakas and Markus Tarn, Werk is a platform that enables companies to hire skilled and vetted migrant construction workers.
The company offers transparency to cross-border blue-collar contracting and supports workers who relocate to other countries by automating paperwork and visa documentation. It claims to work with companies that guarantee workers the same payment terms, treatment, and protection conditions as offered to the locals.
For contractors, once they input the skills they require on-site, the platform uses AI to match them with suitable, skilled workers, who have been vetted by industry experts. Once the worker is hired, Werk handles HR and payroll too.
Co-founder and CEO, Martin Kalamees, says, “Our platform solves two major, and growing, global problems. Firstly, skilled blue-collar migrant workers are being taken advantage of by unregulated agencies and contractors, which sometimes operate illegally. Secondly, construction companies face labour shortages because of the difficulties in sourcing workers from abroad, and of course the devastating situation in Ukraine. We are helping to connect skilled workers with contractors in a legal, transparent, and safe way.”
Recent growth
Werk reports that it has recently witnessed 20 per cent month-on-month growth, has already reached over 2,000 verified and vetted construction workers, and has customers within Estonia, Finland, Sweden, and Denmark.
The company is also developing and testing its cross-border relocation functionality, which automates visa and residence permit processes, the opening of bank accounts, flight tickets, accommodation, access to safe financial services, and support for their families back home.
In addition, the startup is testing a social feature, which allows workers to speak with one another, receive advice, ask questions about living and working within different countries, and consume relevant construction-related content such as tips and tricks.
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