Marco Zappacosta ThumbTack and Bryan Schreier (Sequoia Capital) at Startup Grind Global 2016 | Summary and Q&A

TL;DR

Thumbtack is a platform that connects individuals with professionals for various personal projects, with a focus on providing a reliable and efficient hiring process.

Key Insights

• 💦 Thumbtack is working towards becoming a dominant player in the local services market by providing a reliable and efficient hiring process.
• 🙃 The emotional journey of building a startup is often overlooked, but founders need to embrace the ups and downs to succeed.
• 😤 Understanding oneself and being self-aware is vital for leadership and building an effective team.
• 🥅 Thumbtack aims to improve consistency and reliability in matching individuals with professionals, with the goal of becoming a widely known and used platform.
• 🇺🇸 The market for local services in the United States is massive, and Thumbtack sees significant potential for growth and market penetration.
• ⚖️ Thumbtack's pay-per-response model has been successful in attracting professionals and scaling the platform.
• 🍉 Fundraising success can be influenced by timing, understanding the expectations of the next round of investors, and focusing on long-term goals rather than short-term valuation.

Transcript

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Questions & Answers

Q: How does Thumbtack differentiate itself from other platforms like Google and Yelp?

Thumbtack distinguishes itself by not only providing a comprehensive listing of professionals but also by matching individuals with professionals who are available, interested, and qualified for the job.

Q: How does Thumbtack monetize its platform?

Thumbtack operates on a pay-per-response model, where professionals only pay when they choose to respond to a customer's inquiry. This flexible pricing structure has helped Thumbtack scale and attract a large number of paying professionals.

Q: What is Thumbtack's market size and market share?

The local services market in the United States is worth around $700 billion annually. Thumbtack's current annual revenue of over a billion dollars represents just 0.1% of the market share, indicating significant growth potential.

Q: How did Thumbtack overcome initial challenges in fundraising?

Thumbtack faced difficulties in fundraising due to concerns over monetization. However, they addressed these concerns by implementing a subscription model to showcase their ability to generate revenue. Javelin Ventures recognized their potential and provided the initial funding.

Summary & Key Takeaways

• Thumbtack helps individuals find and hire professionals for personal projects by connecting them with a network of trusted professionals and providing all the necessary information to make an informed hiring decision.

• The platform has facilitated over a billion dollars in commerce and has more than 200,000 active paying professionals.

• Thumbtack aims to become a verb, where people can simply "thumbtack it" to find the right professional for their needs.