In brief: Thumbtack raises US$150 million for its local services marketplace

by Smarty
  • 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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