Investments

Thumbtack Aims To Raise $120M In Funding Round

Gig economy marketplace Thumbtack is looking to raise up to $120 million in a Series H funding round.

The more than 10-year-old company has already raised nearly $300 million. The upcoming round comes at a flat valuation to its 2015 Series G funding round of $125 million, led by Scottish asset manager Baillie Gifford. That funding boosted its valuation around 60 percent to $1.3 billion

Thumbtack is also reportedly looking into acquisition offers with competing or complementary companies, according to reports. In fact, raising venture capital at a flat valuation could signal that a company’s investors aren't sure about a business’ future prospects. The report went on the speculate that it is possible an acquisition deal fell through, and that Thumbtack is looking to its investors to supply a capital infusion.

Previous investors include CapitalG, Sequoia Capital and Draper Associates, as well as individual investors Scott Banister, Cyan Banister and Jason Calacanis, among others.

Earlier this year, Thumbtack announced a partnership with Alia for a pilot program that will bring portable benefits to independent workers on Thumbtack. The program will enable Thumbtack customers who hire a house cleaner, say, in California or New York to contribute a suggested $5 per cleaning, which can then be used by the professional for benefits, including paid time off, disability, accidents, critical illness and life insurance.

“Thumbtack is committed to bringing solutions to independent workers who lack access to benefits — being independent shouldn’t mean you’re on your own,” said Thumbtack Co-Founder and CEO Marco Zappacosta at the time. “Our pros can’t wait for the laws to change, so we are working with NDWA to bring a solution to house cleaners on Thumbtack. The biggest names in the industry are focused on using technology to eliminate the need for workers. At Thumbtack, our energy is focused on using technology to help workers find opportunity and security, and working with Alia is a step in the right direction.”

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