Who knew building a vertical software as a service toolkit focused onand cooling could be worth $8.3 billion? That’s how much Los Angeles-based , a startup founded just eight years ago, is worth now, thanks to some massive tailwinds around the home building and energy efficiency that are serving to boost the company’s bottom line and netting it an unprecedented valuation for a vertical software company, according to bankers. The company’s massive mint comes financing round led by Sequoia’s Global Equities fund and Tiger Global Management.
ServiceTitan’s backers are veritable who’s who of the venture industry, with longtime white shoes investors like Battery Ventures, Bessemer Venture Partners, and Index Ventures joining the later stageslike T. Rowe Price, Dragoneer Investment Group, and ICONIQ Growth.
The new $500likely sets the stage for a public offering later this year or before the end of 2022 if market conditions hold. ServiceTitan now boasts more than 7,500 customers that, employ more than 100,000 technicians, and conduct nearly $20 billion worth of transactions providing services ranging from plumbing, air conditioning, electrical work, chimney, pest services, and lawn care.
If Angi and Thumbtack are where homeowners go to find services and technicians, then ServiceTitan is where those technicians.
Based in Glendale, Calif., with satellite offices in Atlanta and Armenia, ServiceTitan built its business toa problem that its co-founders knew intimately as the children of parents whose careers were spent in the HVAC business.
The market for home services employs more than 5market.
Despite the siren song of global expansion, there’s likely plenty of room for ServiceTitan to grow in the U.S. Homeownership in the country is at a ten-year high thanks to the rise of remote work and a departure from the most significant American cities accelerated by the.
A focus on energy efficiency and a desire to reduce greenhouse gas emissions will likelyin residential and commercial retrofits, boosting new business. Indeed these trends were already apparent in the statistic that home improvement spending was up 3 percent in 2020, even though the broader economy shrank by 3.5 percent. We depend on the men and women of the trades to maintain our life support systems: running water, heat, air conditioning, and power,” said Ara Mahdessian, of ServiceTitan.
Today, as homeownership rates and time spent at home reach record highs, these essentialfrom an increasingly tech-savvy homeowner. By providing contractors with the tools they need to deliver a great customer experience and easily grow their businesses, ServiceTitan enables hardworking men and women of the trades to reach the level of success they deserve.