Thumbtack Secures $75 Million in Financing from Silicon Valley Bank and Hercules Capital

Thumbtack, a technology company focused on home services, has secured $75 million in financing from Silicon Valley Bank (SVB), a division of First Citizens Bank, and Hercules Capital, Inc. This debt facility aims to provide Thumbtack with the capital and liquidity needed as it continues to digitize the $600 billion home services industry.

This financing follows Thumbtack’s most successful fiscal year to date. In 2023, Thumbtack surpassed $300 million in revenue and achieved EBITDA profitability. The company’s home segment revenue increased by 30% year-over-year, with gross profit margins exceeding 90%. This growth is attributed to its efficient two-sided marketplace and superior fulfillment capabilities.

Larry Roseman, Chief Financial Officer of Thumbtack, stated, “We are rapidly growing in the vast home services industry, which remains largely offline. This financing from our long-term partners at SVB and Hercules fortifies our financial position as we aim to become the preferred partner for homeowners across the U.S.”

Earlier this year, Thumbtack introduced the largest product update in its history, featuring 30 new features. The updated app offers homeowners personalized recommendations on projects, timing, and contractors based on their home, location, and goals. The app is powered by Thumbtack’s Instant Book ecommerce engine, enabling homeowners to confirm projects in seconds across more than 100 categories, including roofing, electrical, landscaping, and home organizing.

Derek Becker, Director with SVB’s Corporate Banking Consumer Internet Group, commented, “We are proud to support Thumbtack as they build a scalable business model that brings the home services industry online. With this new financing, Thumbtack can further innovate and expand its marketplace, benefiting small businesses and homeowners.”

Greg Peterson, Managing Director at Hercules Capital, added, “We are excited to continue our partnership with Thumbtack and support its next phase of growth. With the launch of the all-in-one app and other enhancements, we believe Thumbtack is well-positioned to increase its share in the home services market.”

---

If you are a proptech company and want to promote your products for free, go to proptechbuzz.com and submit your products. For investors or proptech buyers, sign up on our platform to stay informed about exciting updates and trends in the Proptech Ecosystem.

Explore more Proptech news at proptechbuzz.com/news, for news tips and promotions, reach out to marketing@proptechbuzz.com.