Thumbtack board member and Sequoia Capital partner Bryan Schreier. Photo by Steve Jennings/Getty Images for TechCrunch

Shortly after a recent report of Thumbtack raising up to $120 million in new funding, the San Francisco-based startup [that matches local professionals with customers who desire their services] has announced $150 million in new funding that values it at $1.7 billion, a slight jump from a previous $1.3 billion valuation. Sequoia Capital led the funding, with participation from Baillie Gifford. Both are previous investors in Thumbtack.

Thumbtack says it’ll put the new funding towards growth, and investments in products and pro tools, such as deeper scheduling and payment integrations that’ll help local services professionals instantly find customers. It’ll hire aggressively this year to do so. Thumbtack’s mobile customer engagement has increased sixfold since 2017 when it remodeled its booking platform. It has also experienced annual mobile growth rates of 125% since then.

Thumbtack co-founder and CEO Marco Zappacosta image: O’Reilly Internal on Flickr

This round included, Thumbtack has raised more than $400 million in total funding. Famed VC Sequoia Capital has participated in every Thumbtack round since leading a $12.5 million investment in 2015. Sequoia’s bets on Thumbtack stands similar to its bets on Medallia, a customer feedback company whose recent IPO reaped huge wins for the VC firm. Prior to going public, Sequoia solely put in $105 million into the company and further led a $150 million investment in 2015. The VC firm also participated in a $70 million investment earlier this year which was Medallia’s last before it went public.

All Sequoia’s bets reaped huge wins, given its roughly 41% stake in Medallia as at its public debut. As of writing, Medallia has a market cap near $4.6 billion. With a quick calculation, Sequoia’s stake is worth nearly $2 billion at this market cap, not bad for some few hundred million dollars of investment.

There maybe such occurrence again in Thumbtack. For now, we can speculate and look to the future when it exits [either IPO or acquisition].

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