RigUp is a company that specializes in providing a platform for on-demand services and skilled labor for gas and oil companies. The firm provides an effective marketplace that helps to connect skilled labor for jobs within the energy industry and it serves both workers and the companies that hire them. In just a few short years, RigUp has grown and expanded to become one of the largest companies in its field and it is revolutionizing the way that companies within the energy industry secure immediate hires when the need arises. Although this sounds like an employment site for energy workers, this is just a small aspect of what the RigUp platform has to offer. There are so many useful aspects and dimensions to the products and services offered that there is a need for greater exploration. Here are 20 things that you probably didn't know about RigUp to help you become more familiar with this quickly growing giant in the energy marketplace.
1. RigUp was established in 2014
RigUp is just entering into its sixth year of operation. It was founded in 2014 by co-founders Xuan Yong, Sandeep Jain, and Michael Witte. Witte and Yong are both graduates of Texas A&M University and both have a deep knowledge of the energy industry. Yong's specialty is in the area of finance. The pair were living in New York when they decided to create their own company, and when the seed funding closed, they packed their belongings and moved to Austin, Texas to get the company set up and on its feet.
2. RigUp is a privately held company
You won't find RigUp listed on the marketplace for stock investors. The co-founders didn't need to take this avenue to secure funding to finance their new start-up. The official IPO status is a private company for profit adn there has not been any indication that RigUp will file for an IPO in the near future, and perhaps never.
3. RigUp uses technology to connect professionals in the Energy industry
RigUp is a technology company that has developed its own platform through software that provides a marketplace for a variety of stakeholders within the energy industry. Through digital means, stakeholders can interact in a safer and more efficient way that is environmentally friendly. The mission of RigUp is to bring changes to the energy industry by offering a strong network of service providers with a way that buyers can quickly and easily connect with the providers.
4. RigUp is in its late-stage funding round
The first round of seed funding closed on June 4th of 2014. The initial seed money of $3 million was led in a seed round by Founders Fund with 2 other investors joining in. On April 14, 2016, a Series A round of funding raised an additional $15 million. In February of 2018, a Series B round led by Global Reserve Group and Quantum Energy Partners secured an additional $15.8 million followed by $30 million the same closing date by Silicon Valley Bank. On January 20, 2019, a Series C round brought in $60 million more and the most recent round of funding was October 11, 2019, which brought in an additional $300 million, led by Andreessen Horowitz.
5. RigUp has 5 registered trademarks
We consulted the United States Patent and Trademark Office and discovered that RigUp has registered five different trademarks with the agency. Because of the unique platform that the company has developed there was a serious need to protect the intellectual rights for the software. The trademarks fall into the category of advertising, and business.
6. Menlo Park firm backs RigUp
RigUp has received financial backing by one of the biggest investors in Silicon Valley, Andreessen Horowitch LLC of Menlo Park. This is the same investment company that helped in the development of Pinterest, Lyft, Facebook and other well-known companies that have risen to the unicorn status.
7. RigUp recently reached unicorn status
RigUp's last round of Series D funding that brought in an additional $300 million to the company has pushed the energy tech startup into the status of being in an elite class. According to a report issued by the Wall Street Journal, the extra infusion of cash has brought the total valuation of RigUp to $1.9 billion in US dollars. Unicorn status is applied to companies that reach the billion-dollar valuation mark and RigUp has reached this milestone by nearly double.
8. Rig-Up streamlines emergent services
RigUp's platform provides an online connection between companies and skilled contract workers that can move on a job immediately. This is referred to as an on-demand service. Anything and everything goes wrong from time to time in the energy business. There are times when there is a need for someone to haul water to provide for machine cooling, and other situations can arise quickly. Through the RigUp platform companies that experience an emergent need can contact one of the contractors on the list to get the services that they need quickly. This is a definite improvement over the previous methods of making numerous phone calls to find a local contractor.
9. RigUp helps contractors to get more work
There are a lot of contractors in the state of Texas that go through slow periods when they don't have any work opportunities. The RigUp platform gets its names out there so businesses that are in need of the services that they provide can contact them quickly and easily. It's an amazing form of advertisement that links the companies that need contracted work with the companies that are in need of the jobs. It works out well for both parties. In essence, RigUp is good for the economy as more people are making money and spending it in their local communities.
10. RigUp advertises benefits for field workers
Field workers in the energy industry can also use the RigUp platform to find healthcare and training partners. This is an added benefit for workers who are in need of quality medical care. RigUp is going the extra mile to ensure that there is added value included in its in-house platform.
11. RigUp takes the risk out of the payment proposal
When contractors accept work from businesses some of them are paid in a timely manner, but other companies hold up the payment for weeks in some cases. RigUp has an in-app payment processing system in place. This gives contractors competitive compensation channels. This in itself offers a variety of benefits and one of them is in forging good relationships.
12. RigUp is expanding its operations
Previously, the majority of companies served were in the gas and oil industry, which is a large market in itself. Most recently, RigUp has turned its eye to the wind and solar spaces industry, working with companies that are in the category of renewable energy. This is yet another untapped market that could be profitable for the firm. RigUp is the ideal solution for busy companies that are in need of contracted skilled workers in specialized areas in an on-demand format.
13. RigUp also falls under the Fintech category
RigUp is beginning to take a more active role in the financial processing aspect of the linkages between skilled labor and businesses. The software that they've developed is becoming more advanced and it now includes special attention to the payment processes and financial interactions that take place between businesses and contractors. This is a new dimension that the company is exploring for further development and expansion. It is not yet clear what the details of the plans are but we assume that it will be in augmenting payment processes that are already in place.
14. The RigUp Platform provides useful services
In addition to linking businesses with contractors, it provides a host of other features that are extremely useful for companies in the energy industry. It allows companies to solicit vendor bids as well as offering an automated pricing analysis. Health, safety, and environmental mandates are also programmed into the platform and it helps businesses to meet these strict regulations in the transactions as well.
15. RigUp plans to make vertical moves
Michael Witte, co-founder of and representative of RigUp announced that RigUp plans to move into new markets and well as new regions. This means moving vertically to provide a range of related services and products, and it also means taking the business to the global front and offering the platform internationally. The vertical movement that RigUp executives plan to take in the near future will expand the products, services and reach dramatically. It is also believed that the valuation of the company will also increase, moving it to gigantic status.
16. RigUp serves an underrepresented class
The executives at RigUp have done their research and the products that they offer to serve a class of professionals that have been underserved. The motto of the company is "powering the world." and the shortage of skilled workers is something that most businesses have been troubled and even hindered by in the energy domain. This fact makes the need for RigUp's platform even more essential because it has the potential for saving companies a lot of money in the long-run. It is the first business of its type that takes a comprehensive approach to provide the technology that can meet multiple needs for all stakeholders in the energy industry.
17. RigUp is going through another expansion period
RigUp has announced that they are currently hiring. Newe technology and other positions are available in the Austin and Denver areas. The company currently employs more than 300 workers. It seeks to fill more than 200 new positions in Denver and Austin in 2020. When all advertised jobs are filled the number of employees at RigUp will exceed 500. This is the target labor pool for the near future, with further expansion envisioned beyond this period of time.
18. RigUp has built an extensive network
RigUp is adding new contractors and vendors to their already impressive network of participants. At the last count, there were more than ten thousand vendors on their list and twenty-five thousand contractors. One of the overarching goals of RigUp is to connect businesses with the right vendor and to do so at the right cost. This is a lofty aspiration, but so far, the firm has been successful in reaching this performance objective reasonably.
19. The platform has built-in safeguards
One of the most impressive aspects of the RigUp software platform is that it reduces the risk of online connections with vendors, and contractors about which little is known with a host of safety features to ensure that businesses get a good match. Risk is reduced by the internal compliance system that is built into the programming. It allows for certification tracking, customizable onboarding and access to training.
20. RigUp provides total transparency
When it comes to dealing with companies that you are not familiar with, it's difficult to know if they are thoroughly vetted and trusted. There are a lot of sketchy contractors out there as well as unreliable companies that skip out on payments until forced to remit. The RigUp platform uses end-to-end digital technology for its invoicing and payments system. This allows participants to minimize operational overhead, to control costs fand to gain transparency. These are the essentials when it comes to doing business and RigUp has made this commitment to everyone who comes on board with the network. Witte and Yong took a simple idea and turned it into a behemoth that aims to provide full-service for stakeholders in the energy industry through a Fintech approach.
Written by Allen Lee
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