Chicago-based business software tracker G2Crowd ($PRIVATE:G2CROWD) is reportedly laying off staffers after missing ambitious revenue targets this year, and alternative data seems to signal the bad news. The startup has big-name backers, like IVP and Pritzker Group, and more than $100 million in funds raised according to Crunchbase - and G2Crowd had recently been sized up as a potential IPO candidate.
After getting a big round of funding and a jumbo valuation, the company didn't match expectations that it would double its income, and both it and its newest acquisition suffered as a result. Downsizing appears to have been in the works for a little over a month now - in mid-November, G2Crowd job listings plummeted, and are down nearly 90% over the last month.
Within G2Crowd, it looks like cuts are being felt across the board. G2Crowd acquired tech stack data startup Siftery in 2018. Siftery had taken on backing from VCs Felicis and Venrock. As our second chart reflects, more and more staffers have been removing Siftery from their LinkedIn ($NSFT) profile, possibly a sign that they've been cut as Siftery was integrated.
That isn't to say G2Crowd hasn't made cuts of its own. Our final chart tracks the total number of G2Crowd jobs cut as of late - around 10%, seen toward the end of our post. It's notable that it comes after substantial trajectory, including a M&A deal.
This could represent not just staffers that were laid off in the recent round of cuts - reportedly, mostly were contained to the marketing and research segment of the company - as well as attrition through resignations. And it's certainly not meant to indicate that G2Crowd is facing particularly hard times, either - it's common for many startups to reduce headcount as they move along their growth trajectory, of which G2Crowd has had plenty since its founding in 2012.
About the Data:
Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales.
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