A start-up company with ambitions to revolutionise the freelancer recruitment industry using blockchain technology is searching for a buyer after entering administration.
Nodal Labs Limited, which used to be based in South West London, has encountered financial difficulties due to cash flow problems, prompting the firm to appoint Bai Cham and David Elliott from CVR Global as joint administrators.
The business has ceased trading and administrators are seeking to sell the firm’s assets – which includes its intellectual property, existing contracts and IT equipment.
Nodal Labs Limited launched in September 2018 to address the challenges faced by freelancers in the creative industry when engaging with recruiters and clients – which already has more than 2,000 freelancers and 35 companies signed up to the revenue-generating platform.
These challenges included finding suitable freelance roles, promoting their services and skill sets, getting a fair and validated day rate that is paid on time, as well as being contractually covered for each engagement.
Nodal’s platform is an online marketplace designed to build trust between employers and freelancers.
The platform is underpinned by Blockchain technology, which means that certain transactions and data are continuously and permanently stored on a distributed network, helping freelancers to build validity in their past and current skills.
The platform initially launched within the special effects, film and commercial media industries, but can work for any industry that utilises day rate freelancers and contractors.
Bai Cham from CVR Global, Joint Administrator of Nodal Labs Limited, said:
“This is a clever piece of software that gives us a glimpse into the future of freelance recruitment and can act as a template for other sectors too.
“The blockchain element brings benefits which can transform some of the trust issues in the hiring process and improve the process for both sides of the hiring marketplace.
“It is a community in itself that trades on verification and trust and the potential for mass usage across various sectors is huge but, like most start-up companies, the challenge was accessing funding until the business becomes self-sufficient.
“The platform was already being used by both freelances and recruiters thus proving the concept and that platform technically works, but further working capital and a technical maintenance budget is required to allow the platform to reach its maximum potential.
“Nodal Labs would be an ideal purchase for a recruitment agency looking to get ahead of the competition, either as a ‘bolt-on’ to their existing business or a stand-alone business to position themselves at the forefront of the freelancer recruitment industry.”