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Thumbtack Raises $125M at a $1.3B Valuation

41 点作者 jsnathan超过 9 年前

11 条评论

physcab超过 9 年前
So a little story about Thumbtack. My girlfriend is a chef and she and her chef friends have all turned to Thumbtack at one time or another to seek out private clients. There&#x27;s a ton of them here in SF since lots of people have money in the city.<p>One by one, they all dropped off. I&#x27;ve overheard them talking about their experiences. Private client posts gig, asks for bids. Chef buys credits, uses them to bid. Private client opens email, never responds, drops off the face of the Earth. Chef loses money. My girlfriend probably spent $100 without any return. She has since gone on to other much more profitable sources for leads.<p>Thumbtack of course reaps the reward, but at some point their user acquisition flywheel is going to have trouble turning.
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adamseabrook超过 9 年前
I find the business model fascinating and it is amazing to watch them scale. My family business used to spend over $20k per year on YellowPages ads which drove about 8-12 calls per day at a very high close rate. As YellowPages has died off the money has been invested in an online presence but the skill required to design the site, keep it updated, and to manage all the online advertising spend is well beyond a normal person.<p>The fragmentation impact of having your customers looking for your services in dozens of different ways vs opening the phone book is costly and complex to overcome.<p>Once you pay a designer, hosting provider, and then pour the rest into Adwords it is very hard to get the same 8-12 calls per day with $20k of annual spend.<p>Thumbtack are helping solve that problem and syphoning all the money these businesses used to spend on YellowPages or are wasting on poor Adwords bidding strategies. Paying per lead is not that much different from paying $20k to YellowPages who give you no guarantee you will ever get a phone call.
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CrazyCatDog超过 9 年前
This is great news because hopefully it will allow Thumbtack to become <i>the</i> domestic services platform.<p>Think the funding and valuation is too high? It takes inordinate marketing spend to become a focal point outside of metropolitan areas. I&#x27;ve interviewed with a handful of more focused (e.g. industry specific) services marketplaces, and each one&#x27;s offices felt like a sales boiler room as hundreds of associates reach out daily to service providers across the country all but begging them to join their platform. Pulling it off across multiple industries will take n as many sales associates, but the payoff is enormous (imagine, an e-bay for all local service providers). Thumbtack caters to the broadest swath of service providers, and winning in k industries makes it that much easier to attract providers from the remaining n-k industries; there are very strong network effects here on top of the obvious economies of scale.<p>On the consumer side, Thumbtack delivers huge benefits. I spent two hours calling carpet cleaners to schedule a cleaning on my move out day in Seattle. When my carpet cleaner bailed the day of, I tried thumbtack for the first time and someone was at my house within an hour. When I needed a linux box built I reached out to Thumbtack, and within 2 hours I had multiple bids...in Salt Lake City no less. There is, however plenty of room to grow: the number of lead-paint removers on thumbtack in SLC where 90% of the housing stock was built 60 years before lead paint was banned: zero (and I&#x27;m still searching for one).<p>Transferring search costs from consumers to providers, providing a reputation system, facilitating coordination... these are all very valuable things to me, that&#x27;s why I&#x27;d participate even at this valuation and that&#x27;s also why I so desperately want one of these platforms to win, and so should you.
dangero超过 9 年前
One of the amazing things to me about Thumbtack is the new user on-boarding experience. If you&#x27;re building a product that needs user signups you should check it out. Basically if you come there looking for someone to help you mount something, they take you straight there and only ask for your email address so they can send you an update when they&#x27;ve found someone to do the job. What they&#x27;ve done in the background is create an account for you, but they just never asked you to create a password. It&#x27;s a small detail in the overall service offering, but I think it probably increases their user retention rate quite a bit.
nchelluri超过 9 年前
As a developer&#x2F;employee, is there any benefit to being at a company that has a super high valuation? Or being an early employee at a company that later gets one?<p>It doesn&#x27;t necessarily mean a good exit, right? Though I suppose if you trust the valuation then it might imply the chances are higher...<p>(Had a phone call with a recruiter from here some months ago, never called them back to schedule an interview... vaguely wondering if I cost myself anything.)
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shubhamjain超过 9 年前
I just opened their site and I was welcomed with :<p>&quot;Sorry, this request is coming from a country which we currently do not support.&quot;<p>Woah! So if I am from a country you do not support, I can&#x27;t even know what you guys do.
ogezi超过 9 年前
Yet another &quot;UNICORN&quot;. The VCs that are funding this company and its ilk are signing deals that immensely limit their downside potential and max their upside. The liquidation preferences, participation rights and antidilution rights the VCs have are very good for their interests. It&#x27;s truly a pity that when the market conditions change and the money streams dry up, the founders and employees of these companies will have almost nothing. This bubble seems worse than the last one because by now you&#x27;d expect people to have learnt their lessons.
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cocoflunchy超过 9 年前
Does someone know what the equity of the founders looks like in these ultra-funded companies? Do they still own a significant part of their business? Is it more like 5%? 10%? 30%? 50%? (doubt it)
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AndrewKemendo超过 9 年前
The whole Thumbtack credits thing is interesting to me because it seems unnecessary - but is a core feature. Can someone explain to me why they prefer to have a credit based system instead of just a variable cost to bid.<p>With systems that have their own currency (think arcades) you always have some of that currency left over that is wasted - I wonder if that is how they plan on making margin.
cft超过 9 年前
I went there for a Go Meetup, and I couldn&#x27;t easily understand what they did after talking to 5 employees. The private equity bubble is reaching its crescendo.
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yeukhon超过 9 年前
&gt; The company doesn’t disclose revenue and is unprofitable.<p>Valuation to me doesn&#x27;t mean much until the company is bringing in real money consistently.<p>Because soon or later you are going to run out of money and you will just wait for acquisition.<p>Also, I have never heard of Thumbtack since its debut (over six years)... that&#x27;s just my opinion.
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