Fiverr was once the go-to place for freelancers. From voice-overs to coding to graphic design, it seemed unstoppable, and investors valued it at over $11 billion.
Then it collapsed. Its stock has fallen more than 90%, erasing nearly $10 billion. What went wrong? This is the story of how Fiverr rose on the back of a pandemic-fueled boom, then imploded under its own weight. As the world locked down, demand for digital services exploded. Companies raced online, laid-off workers turned to freelancing, and Fiverr became a lifeline.
Revenue skyrocketed, shares soared from $25 to over $200, and leadership doubled down with massive marketing campaigns, pricey acquisitions, and Super Bowl ads. But when the world reopened, growth slowed, losses mounted, and the spending spree caught up. Sellers revolted as algorithms shifted, hidden fees sparked lawsuits, and tone-deaf ad campaigns backfired.
Even their big AI pivot only fueled backlash from the freelancers they relied on. Fiverr chased growth at all costs, only to watch it all come crashing down.