- Thumbtack just closed a new funding round of US$150 million.
- Sequoia is leading the round, and the company is now valued at US$1.7 billion.
- Thumbtack started as a simple marketplace for local professionals.
- Clients could post a message saying that they were looking for carpenters, wedding planners or house cleaning services.
- Professionals then scrolled through listings and sent quotes.
- Customers eventually picked a professional.
- While it was a huge hit, it didn’t scale well and created a ton of issues.
- The startup rewrote the back end, created a new front end, pivoted to a new business model and essentially created a new product.
- Thumbtack now automatically generates quotes based on your needs and your location.
- Given that you can get quotes in a few minutes, it didn’t make sense to charge professionals every time they send a quote.
- Now, professionals pay Thumbtack a small fee when customers contact them after a quote.
- Now growth has re-accelerated dramatically, and we have the runway to make Thumbtack the only platform they need to find the right customers.
- With today’s new funding round, the company can now focus on attracting service providers again.
- According to the Wall Street Journal, this could be the last funding round before Thumbtack files to go public.
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