Angie's List, an online repository of reviews of local businesses and service providers, has revealed a new $18 million round of venture debt funding from Silicon Valley firm Lighthouse Capital Partners. The investment follows a $35 million round supplied by Battery Ventures earlier this year, as well as earlier equity and bond fundings from BV Capital, Aquent Inc., and City Securities Corp.
In contrast with listings and reviews sites such as
Yelp,
Smalltown and
GenieTown, Angie's List relies on paid subscriptions from end users for a large portion of its revenues. More than 750,000 people in and around 124 cities use the service to read and share reviews of contractors, home repair professionals, health care providers and other local businesses. Founded in 1995 in Columbus, Ohio, and currently based in Indianapolis, Angie's List has grown more aggressively in recent years, and plans to continue its international expansion.
Startups have had difficulty succeeding in the local-business listings market, often relying on expensive direct sales teams and dealing with cluttered, outdated or confusing data. The home-improvement category figures to suffer as consumer spending slows over the coming months as well, although Angie's List's reliance on subscription revenues more than online advertising could provide strength in a difficult market.
-- Paul BonanosSee Feb. 20 post from Tech Confidential concerning local services sites
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