Thumbtack Announces $75 Million in Financing from Silicon Valley Bank and Hercules Capital
Continues strong momentum following biggest product update in history and best year on record
Thumbtack, the technology company helping millions of people confidently care for and improve their homes, today announced $75 million in financing from Silicon Valley Bank (SVB), a division of First Citizens Bank, and Hercules Capital, Inc. (NYSE:HTGC). The debt facility provides access to efficient capital and liquidity for Thumbtack as it continues to bring the $600 billion home services industry online.
The new financing comes on the heels of Thumbtack's best fiscal year to date. In 2023, the company surpassed $300 million in revenue and achieved EBITDA profitability. Thumbtack's home segment revenue increased 30% year over year, with gross profit margins in excess of 90 percent. This momentum was driven by its robust two-sided marketplace and best-in-class fulfillment capabilities.
"We are one of the fastest growing players in the enormous home services industry, which remains less than 10% online. And there is even more opportunity ahead as we fundamentally change how people manage their homes," said Larry Roseman, Chief Financial Officer of Thumbtack. "This financing with our long-term partners at SVB and Hercules strengthens our balance sheet for the next chapter as we become the go-to partner for homeowners all across the U.S."
Earlier this year, Thumbtack launched the biggest product update in the company's history, which included 30 new features. The new app provides homeowners with personalized recommendations on what projects to do, when to do them, and who to hire based on their home, location, and goals. Everything is built on top of Thumbtack's Instant Book ecommerce engine, which enables homeowners to confirm projects in seconds across more than 100 categories including roofing, electrical, landscaping, and home organizing, helping homeowners move past procrastination and get more done.
"We're proud to have worked with Thumbtack over the years as they've built a scalable business model that positions the company for success as they work to consolidate and bring the home services industry online," said Derek Becker, Director with SVB's Corporate Banking Consumer Internet Group. "With this new financing, Thumbtack will be able to further innovate and grow its marketplace that supports hundreds of thousands of small businesses and millions of homeowners each year."
"Hercules Capital is very excited to continue our long-term partnership with Thumbtack and support its next phase of growth," said Greg Peterson, Managing Director at Hercules Capital. "Through the launch of the all-in-one app and other product enhancements, we believe that Thumbtack's platform is uniquely positioned to continue to gain share in the Home Services market."
About Thumbtack
We're Thumbtack, a technology company helping millions of people confidently care for and improve their homes. Our homeowners get personalized guidance on what to do and when to do it as well as who to hire from our growing community of 300,000 local service businesses. Every day in every county of the U.S., people turn to Thumbtack to complete small fixes, routine maintenance, and major improvements. With over 10 million 5-star projects and counting, we empower homeowners to take control and local businesses to grow. Accomplish more with Thumbtack.
About Hercules Capital
Hercules Capital, Inc. (NYSE:HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences, and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed over $20 billion to over 650 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. Companies interested in learning more about financing opportunities should contact [email protected], or call 650.289.3060.
About Silicon Valley Bank
Silicon Valley Bank (SVB), a division of First Citizens Bank, is the bank of some of the world's most innovative companies and investors. SVB provides commercial banking to companies in the technology, life science and healthcare, private equity and venture capital industries. SVB operates in centers of innovation throughout the United States, serving the unique needs of its dynamic clients with deep sector expertise, insights and connections. SVB's parent company, First Citizens BancShares, Inc. (NASDAQ:FCNCA), is a top 20 U.S. financial institution with more than $200 billion in assets. First Citizens Bank, Member FDIC. Learn more at svb.com.
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