Listen to this article
Thumbtack has secured $75 million in financing from Silicon Valley Bank and Hercules Capital to enhance its digital home services platform. This investment follows a year of significant growth, with the company surpassing $300 million in revenue and achieving profitability. Thumbtack aims to continue expanding its market presence and supporting both homeowners and local service businesses through innovative features and partnerships.
The Big News: Thumbtack’s $75 Million Funding Milestone
Thumbtack recently secured $75 million in financing from Silicon Valley Bank (SVB) and Hercules Capital. This significant funding round aims to enhance Thumbtack’s mission to streamline home improvement by bringing the $600 billion home services industry online. Thumbtack’s access to efficient capital and liquidity will further support its growth and innovation in the digital home services market.
A Year of Success: Thumbtack’s Impressive Growth
In 2023, Thumbtack achieved remarkable financial milestones. The company surpassed $300 million in revenue and reached EBITDA profitability. The home segment revenue saw a 30% year-over-year increase, driven by Thumbtack’s robust two-sided marketplace and exceptional fulfillment capabilities. The company’s gross profit margins exceeded 90%, highlighting its effective business model and operational efficiency.
The Power of Partnership: Collaborating with Industry Leaders
Thumbtack’s long-term relationships with Silicon Valley Bank and Hercules Capital have been instrumental in its growth. Key executives from SVB and Hercules Capital have expressed strong support for Thumbtack’s vision and operations. These partnerships provide Thumbtack with the necessary financial backing and industry insights to continue expanding its market presence and innovating its platform.
Thumbtack’s Biggest Product Update
Thumbtack recently launched its most significant product update to date, introducing 30 new features. The new app offers homeowners personalized recommendations on projects, scheduling, and hiring based on their home, location, and goals. Key features include:
- Personalized project recommendations
- Project scheduling
- Instant booking across more than 100 categories
- Integration of the Instant Book ecommerce engine
These features help homeowners overcome procrastination and manage their home improvement projects efficiently.
Recommended: Monarch Tractor Secures $133M Funding To Enhance AI And Autonomous Farming Technology
The Future of Home Services: Thumbtack’s Vision
Larry Roseman, Thumbtack’s Chief Financial Officer, shared insights on the company’s future plans. Thumbtack aims to bring more of the home services industry online, with the goal of becoming the primary partner for homeowners across the U.S. The company is focused on leveraging its platform to change how people manage their homes, making the process more streamlined and accessible.
Empowering Homeowners and Local Businesses
Thumbtack’s platform has a significant impact on both homeowners and local service businesses. With over 10 million 5-star projects completed, Thumbtack empowers homeowners to take control of their home improvement tasks. The platform also supports the growth of 300,000 local service businesses by connecting them with potential customers. Thumbtack facilitates a wide range of home services, including:
- Small fixes
- Routine maintenance
- Major home improvements
Thumbtack’s Path Forward
The $75 million investment from Silicon Valley Bank and Hercules Capital marks a significant milestone for Thumbtack. This funding will enable Thumbtack to continue its growth and innovation in the home services industry. As Thumbtack expands its digital platform, it aims to become the go-to partner for homeowners and support the growth of local service businesses. The future looks promising for Thumbtack as it continues to lead the way in bringing the home services industry online.
Please email us your feedback and news tips at hello(at)techcompanynews.com
