Thumbtack has successfully raised $423.2 million over seven funding rounds, achieving a valuation of over $1 billion. The platform connects users with local professionals for various home-related services, from repairs to cleaning.
Keep reading to explore the intricacies of Thumbtack's fundraising journey and the investors backing this innovative platform.
What Is Thumbtack?
Thumbtack, founded by Sander Daniels, Jonathan Swanson, and Marco Zappacosta, is a technology company that helps millions of people care for and improve their homes. Established in 2008, Thumbtack is headquartered in San Francisco, California.
The platform connects users with local professionals for various home services, including repairs, cleaning, and remodeling. Thumbtack brings the $500 billion home services industry online, empowering homeowners to manage their homes effortlessly.
With a workforce of 1001-5000 employees, Thumbtack continues to innovate and expand its offerings, making home management more accessible and efficient for everyone.
How Much Funding Has Thumbtack Raised?
- Series A
- Amount Raised: $4.5 million
- Date: January 2012
- Lead Investors: Javelin Venture Partners
- Motivation Behind the Round: To hire more employees to support the company's growth.
- Series B
- Amount Raised: $12.5 million
- Date: June 2013
- Lead Investors: Sequoia Capital
- Motivation Behind the Round: To leverage Sequoia Capital's focus on building enduring, meaningful brands and to enhance Thumbtack's growth in the local services market.
- Series C
- Amount Raised: $30 million
- Date: May 2014
- Lead Investors: Sequoia Capital and Tiger Global Management
- Motivation Behind the Round: To take the company to the next level in the U.S. or possibly to prepare for international expansion.
- Series D
- Amount Raised: $100 million
- Date: August 2014
- Lead Investors: Google Capital
- Motivation Behind the Round: To work with new investors, particularly Google Capital, which could provide strategic advice and support.
- Series E
- Amount Raised: $125 million
- Date: September 2015
- Lead Investors: Baillie Gifford
- Valuation at Round: $1.3 billion
- Motivation Behind the Round: To develop additional services like invoice, payment, scheduling, and customer management tools for small business owners.
Thumbtack has raised a total of $272 million and is currently valued at $1.3 billion.
Key Investors
- Sequoia Capital
- Details: Sequoia Capital is a leading venture capital firm known for investing in companies that build enduring and meaningful brands. They have been involved in multiple funding rounds for Thumbtack, including Series B and Series C.
- Investment Focus Areas: Technology, healthcare, consumer, financial services.
- Notable Investments: Apple, Google, Oracle.
- Tiger Global Management
- Details: Tiger Global Management is a global investment firm that invests in both public and private markets. They are known for their significant investments in technology and internet companies.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Spotify.
- Javelin Venture Partners
- Details: Javelin Venture Partners is a venture capital firm that invests in early-stage technology companies. They led Thumbtack's Series A funding round.
- Investment Focus Areas: Early-stage technology companies.
- Notable Investments: MasterClass, Clutter, Fivestars.
- Baillie Gifford
- Details: Baillie Gifford is a global money management firm with about $173 billion in assets under management. They led Thumbtack's Series E funding round.
- Investment Focus Areas: Public and private companies across various sectors.
- Notable Investments: Tesla, Amazon, Alibaba.
- Capital G
- Details: Capital G is the growth equity investment fund of Google. They focus on growth-stage technology companies and have been a significant investor in Thumbtack.
- Investment Focus Areas: Growth-stage technology companies.
- Notable Investments: Airbnb, Stripe, Lyft.
What's Next for Thumbtack?
Thumbtack stands at the cusp of a vast opportunity in the local services market, valued at over $500 billion. With plans to develop additional services like invoicing, payment, scheduling, and customer management tools, the company aims to enhance its platform for small business owners. This expansion could significantly increase the number of active professionals on the platform, currently at 200,000, and drive further growth.
Future fundraising opportunities appear promising, especially with the involvement of long-term investors like Baillie Gifford. These investors could provide the necessary capital to support Thumbtack's ambitious plans, including potential international expansion. However, challenges such as maintaining profitability, ensuring high-quality service, and competing with other platforms in the local services market remain. Navigating these hurdles will be crucial for Thumbtack's sustained success.
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