The recent wave of layoffs across tech giants like Amazon, Alphabet, Microsoft, and Meta has sent ripples through the industry. While this news is undoubtedly concerning for those directly impacted, it presents a unique opportunity for tech talent seeking fractional or project-based work and private equity and venture-funded portfolio companies looking to scale.
How to start your job search
Being laid off can be a stressful and uncertain time. If you have been recently been laid off, you may be wondering what your next steps should be. One option you may want to consider is fractional freelancing.
Fractional freelancing is a type of work arrangement where you provide your services to a company on a part-time or project basis. This can be a great option for people who are looking for flexibility and autonomy in their work. It can also be a good way to bridge the gap between full-time jobs.
Runar Reistrup, CEO of YunoJuno, a freelancer jobs platform, said earlier this year that despite the economic downturn, the platform saw a 60% increase in bookings in 2023, translating to over $1.5 billion in revenue distributed to freelancers through the platform. This surge indicates a growing preference for flexible freelance talent, with companies seeking to optimise their workforce without adding a permanent headcount.
“Freelancers continue to prove themselves as a highly-skilled, adaptable, and resilient segment of the workforce,” said Reistrup. “As companies navigate economic uncertainties, we expect the demand for freelance talent to continue rising, solidifying their position as the future of work.”
Alternative ways to find freelance work
While jobs platforms are popular, recently funded companies can also provide a good source of fractional freelance opportunities. These companies are typically growing quickly and need help with a variety of tasks. They may not have the budget to hire full-time employees, but they may be willing to hire fractional freelancers.
But how do you find companies that have recently raised money? Here are a few ways to go about your search, according to Expandi.io.
This article offers tips on how to find recently funded startups (Series A and above) for potential job opportunities using platforms like Crunchbase, UK Tech News and Apollo. Surfing for tech investment news on a weekly basis is also helpful since articles can report on not only which companies are growing the fastest but the amount of money they have raised and how the funding will be allocated.
Here’s how you can use these sites to your advantage:
- Identify funded startups: Use the platform’s search filters to identify companies that have recently received funding (Series A and above). Specify the funding round and timeframe to narrow your search.
- Target key decision-makers: Filter your search to find C-level executives or other relevant decision-makers in your field.
- Directly contact potential employers: Use the platform’s outreach tools or export contact information to connect with decision-makers at these companies. Inquire about potential job opportunities or introduce yourself for future consideration.
Top tips
- Timing is key: Focus on fast-growing businesses whether startups or more midmarket private equity-backed portfolio companies that have recently secured funding, as they are more likely to be actively hiring.
- Target the right people: Connect with decision-makers who have the authority to hire.
- Be proactive: Don’t wait for job postings. Reach out to express your interest and qualifications since a lot of decisions could be made including hiring within the first 60 days of closing a funding round.
Why consider fractional freelance work after getting laid off
Flexibility and Autonomy: Freelancing offers the freedom to choose projects that align with your interests and skills, allowing for a better work-life balance.
Diverse opportunities: Portfolio companies offer a variety of projects and challenges, enabling you to broaden your experience and skill set.
Competitive compensation: With companies eager to secure top talent, freelancers can command attractive rates and benefits.
How to determine your freelance rates
There are different sources that will provide rates every year. The following rates are a combination of rates from different sources but can serve as a base to work from when determining your rates. However, if you have been working in tech you will undoubtedly have worked with freelancers or fixed term contracyors before. Reach out to them for their guidance and feelings about going freelance. Plus, sign up for news alerts pertaining to the freelance economy and recruitment within the contractor sector.
US freelancer rates
Experience Level
Junior (0-3 years):
$40-$80 per hour
Common roles: Web developer, graphic designer, social media manager
Mid-Level (3-7 years):
$80-$150 per hour
Common roles: UX/UI designer, software engineer, project manager
Senior (7+ years):
$150-$300+ per hour
Common roles: Data scientist, AI/ML engineer, cybersecurity consultant
Popular Skills & Roles
- AI/ML Engineer: $100-$250 per hour
- Cloud Computing Engineer: $80-$180 per hour
- Cybersecurity Analyst: $70-$150 per hour
- Data Scientist: $90-$200 per hour
- Full-Stack Developer: $70-$170 per hour
- Mobile App Developer: $60-$150 per hour
- UX/UI Designer: $60-$140 per hour
- Project-Based Rates
- Website Design: $5,000-$20,000+
- Mobile App Development: $10,000-$100,000+
- Software Development: $20,000-$200,000+
UK freelancer Rates
Experience Level
Junior (0-3 years):
£25-£50 per hour
Common roles: Web developer, graphic designer, social media manager
Mid-Level (3-7 years):
£50-£100 per hour
Common roles: UX/UI designer, software engineer, project manager
Senior (7+ years):
£100-£200+ per hour
Common roles: Data scientist, AI/ML engineer, cybersecurity consultant
Popular in-demand skills and roles
- AI/ML Engineer: £70-£180 per hour
- Cloud Computing Engineer: £60-£140 per hour
- Cybersecurity Analyst: £50-£120 per hour
- Data Scientist: £70-£160 per hour
- Full-Stack Developer: £50-£130 per hour
- Mobile App Developer: £40-£100 per hour
- UX/UI Designer: £40-£100 per hour
- Project-Based Rates
- Website Design: £3,000-£15,000+
- Mobile App Development: £7,000-£70,000+
- Software Development: £15,000-£150,000+
Note: These rates are approximate and can vary based on individual circumstances and market conditions. It’s always best to discuss rates with potential clients or freelancers directly.
Factors affecting rates:
Experience: The more experience a freelancer has, the higher their rates tend to be. However, who you have worked with can also carry a lot of weight when applying for freelance work. Factor in why certain companies or projects could be your ticket to an interview or initial meeting.
Skills: In-demand skills like AI/ML, cloud computing, and cybersecurity command higher rates because these skills are specialist but also core to many hast growing fast companies that are attracting the bulk of venture funding so far this year.
Role/project complexity: Complex projects or specialised roles generally pay more.
Location: Rates can vary based on the cost of living in different locations within the US or UK. However, when you think about it, you should not allow where you live to determine your freelancer rate as that has no bearing on the client’s overheads since you are not an employee and if working remotely again, not relevant.
Demand: High demand for certain skills can drive up rates.
Freelancer’s reputation and portfolio: A strong reputation and impressive portfolio can justify higher rates.
Additional Resources:
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What portfolio companies need from freelancers:
Proven expertise: A strong portfolio demonstrating successful project delivery and technical proficiency. By reading the funding reports either on investment news sites or the company’s website, you can get a feel for a portfolio company’s objectives and cater your pitch, skills and portfolio presentation accordingly.
Adaptability and agility: The ability to quickly integrate into new teams and adapt to changing project requirements. Have you done this before? If so, write a paragraph in the style of a case study to back this up.
Effective communication: Clear and concise communication skills and remote-working app skills to ensure seamless collaboration with remote teams. Apps such as Basecamp include remote digital communication and project management for in-house teams and customers. Other apps that help remote teams can be found here.
Results-oriented approach: A focus on delivering measurable outcomes and exceeding project expectations by using your previous experience as a guide.
While tech layoffs are not welcome by anyone, they happen. That is why portfolio companies must make the most of the situation and capitalise on the abundance of talent recently coming to market to accelerate their growth, while tech professionals should leverage their skills and experience in a flexible and rewarding way.
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