Home improvement app Thumbtack has received $70 million in new debt financing.
The funding — from Silicon Valley Bank (SVB) and Hercules Capital — will help Thumbtack access new capital and liquidity, the company said in a Wednesday (July 30) news release.
“We are one of the fastest growing players in the enormous home services industry, which remains less than 10% online,” said Larry Roseman, Thumbtack’s finance chief.
“And there is even more opportunity ahead as we fundamentally change how people manage their homes. 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 debuted its comprehensive home management app, which — as PYMNTS wrote — highlights the growing trend of consumers turning to digital tools for tackle do-it-yourself projects and home improvements.
Pointing to data that nearly 70% of homeowners admit to putting off essential home projects due to feeling overwhelmed, the company stressed that the app provides guidance on what projects to prioritize, when to tackle them and who to hire.
“Two things are true about today’s homeowners: they plan to stay and invest in their homes for decades, yet they delay essential upkeep and value-add improvements because they don’t know where to start,” said Marco Zappacosta, co-founder and CEO of Thumbtack.
“This digitally native generation wants to manage their homes the way they run the rest of their lives — on their phones. Our all-in-one app brings the support and peace of mind homeowners need.”
Beyond the individual features and functionalities “lies a broader trend reshaping the way consumers interact with their living spaces,” PYMNTS wrote, as the proliferation of smart home devices has ushered in a more interconnected home ecosystem.
PYMNTS Intelligence research shows the average consumer now owns six such devices, with millennials and bridge millennials leading the way with an average of seven devices each.
“The study also highlighted a consistent rise in the adoption of smart home devices and connected appliances,” PYMNTS wrote.
“For instance, ownership of smart refrigerators rose from 5% in 2019 to 9% in 2023, while connected thermostat ownership climbed from 10% to 15% during the same period. These figures underscore the increasing reliance on smart technologies to streamline household tasks and enhance overall living experiences.”
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