Thumbtack raises $150 million for its local services marketplace
Thumbtack just closed a new funding round of $150 million. Sequoia is leading the round, and the company is now valued at $1.7 billion. TechCrunch’s Kate Clark previously reported that the startup was raising again, but that it was a tough process.
In a candid blog post, co-founder and CEO Marco Zappacosta admits that the company faced multiple challenges. 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. “We took a business that was growing more than 80% year over year and we pressed pause,” Zappacosta wrote.
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
This post was originally published on this site