Local Service Reviews Site Angie’s List Raises $35 Million Funding
Angie’s List, one of the original online review sites focused on local homes service companies and contractors, has raised a crazy amount: the Indianapolis-based company has received a $35 million investment from Battery Ventures, for a minority stake. The list/service was founded in 1995, and says it has 600,000 subscribers in 124 major cities in U.S. The money will be used for expansion in other cities here and internationally, starting with Toronto and London. Also, the company has now expanded into listings and ratings on the health care industry, including reports on doctors, facilities and insurers, according to IBJ. The story says the 325-employee firm posted revenues of roughly $28 million last year. Previously it had raised about $13 million in two rounds, from BV Capital and staffing firm Aquent. More on funding in the release here.
This Wikipedia entry has more details on the history of the company.
Posted In: Money, M&A & Venture Capital, Venture Capital, Social Media, angies list, battery ventures
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Comments (2)
Apr 11, 2008 8:30 AM
Wow. Why? For what?
There’s heat in this space no doubt. ReachLocal and Yelp are overvalued too.
Blame it on the $14B in print yellow page advertising that sits waiting to be poached. But doing this is hard—or Google would have entirely wrapped it up by now.
Angie’s List currently distinguishes itself by doing the web poorly. Their site is sparse. Their traffic is light. Their monthly .pdf magazine is quaint, I guess. It’s got to be for the brand. Is that what BV is thinking?
The one to watch may be Kudzu.com. In cities like Phoenix and Atlanta, it’s Angie’s List on steroids. Could they spread out?
Jan 23, 2009 4:07 PM
I’m guessing they got the funding because of a solid business model. Competition in the space aside, they have $28 million in subscription revenue, which more than most of the competition can say, and certainly is more appealing to an investor than just ad-based revenue.