There’s a war brewing in the home improvement tech industry with giants like Amazon and Google just starting to get involved and plenty of established brands already in the space, from Porch to Pro.com and Angie’s List.
But now, there’s a startup competitor in San Francisco that’s beginning to look a whole lot more intimidating.
Thumbtack, which matches homeowners with service professionals like plumbers and interior designers, announced on Tuesday it has raised $125 million. According to the New York Times, that pushes the company past the $1 billion “unicorn” mark with a valuation of $1.3 billion. Backers include Scottish investment firm Baillie Gifford, as well as Tiger Global, Google Capital and Sequoia Capital.
The 6-year-old company used the news as a chance to take a jab at competitors and reveal a little more about itself, showing off impressive numbers like the $1 billion in revenue it is generating every year for the 200,000 professionals paying to use its platform.
“It’s no wonder players like Google and Amazon have recently gone after the same space. There’s a lot of opportunity here,” Thumbtack CEO Marco Zappacosta wrote in a blog post announcing the funding. “But in the end, it’s going to come down to whoever can best solve this very tricky problem. And with money in the bank, offices full of smart people, and enthusiastic pros and customers by our side, we feel damn good about our odds.”
The company also said it has more paying professionals using the site than Yelp and Angie’s List, combined.
The investment follows plenty of rejection for Thumbtack, with Zappacosta saying the company got turned down 42 times when it was raising its series A financing.
“With our bank account close to zero, we started discussing how we were going to let go of the entire team. But even in the face of defeat, we could see our dream off in the distance,” he wrote. “There was just a mountain (and a desert, and maybe a lava pit) in the way.”
Seattle competitors such as Pro.com and Porch also have raised large financing rounds, but the $125 million from Thumbtack is the biggest round in the sector to date. Pro.com has raised $17.5 million across two rounds, while Porch, back by Lowe’s and others, has raised $98.8 million across three rounds.