The French startup Jump wants to shake up the sector of wage portage companies, which offer an alternative to traditional freelance jobs. They can hire workers on open-ended contracts to gain the stability and benefits of a full-time contract. But the workers remain independent – they can work with several clients and negotiate their contracts directly.
What differentiates Jump from traditional companies operating in the space is that it is much cheaper and much more automated. Jump lets you create an account and send your first invoice automatically — you don’t need to talk to anyone at Jump to get started.
Once signed up, you can start asking your customers to pay Jump instead of paying you directly. At any time, you can see your outstanding bills and how much money you have in your Jump account.
Jump customers can then create payslips and receive pay. And because it is a French permanent contract, you are affiliated with the national health system and you start saving for your retirement. If things are not going well with your client, you can request termination of the contract and become eligible for unemployment benefits.
The company raised a funding round of 4.5 million dollars (4 million euros) led by Index Ventures. Kima Ventures and 16 angel investors also participated in the round, such as Nicolas Brusson, Hanno Renner, Laurent Ritter and Thibaud Elziere.
Traditional umbrella companies take a share of your annual turnover. The price varies, but it can be 5%, 7% or sometimes even 10%. For example, Jump co-founder and CEO Nicolas Fayon worked for ITG, which charges 6% to 8% on your earnings. You can also pay ITG an additional 2% to manage expenses and thus optimize your compensation.
Jump currently charges a flat subscription of €79 per month ($89). Customers can then access third-party services, such as professional and personal life insurance with Axa, health insurance with Alan, several freelance marketplaces (Malt, Talent.io and LeGratin) and other miscellaneous services (Simbel, Secret or HelloReady).
So far, Jump has worked with hundreds of freelancers. They have billed 3 million euros so far. Many freelancers could benefit from such a product, such as promoters, real estate agents or drivers. And I believe there is a great market opportunity for umbrella companies; they could be particularly useful for people working remotely for foreign companies who do not wish to open a subsidiary in France.