Danish startup TrustPilot raises €18.3mln in funding
Trustpilot raised 18.3 million euros in Series C financing. With the extra money the Danish company wants to expand its online reviews service to international markets. Global expension in 2013 already let to opening of offices in New York and London.
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The funding round was led by venture farm DFJ Esprit and DFJ, but existing investors Index Ventures, Northzone and Seed Capital also participated in the series C round. The 2007 founded TrustPilot had already raised over 30 million euros in venture funding to date. “DFJ Esprit and DFJ are excited to be leading this investment and to be supporting Trustpilot and its impressive team as they accelerate their American business and operations from a strong European base”, says DFJ Esprit partner Krishna Visvanathan. “We see strong potential for Trustpilot to become the global de facto standard in company reviews.”
TrustPilot grows hard
TrustPilot is a Copenhagen-based company which gives consumers the opportunity to rate online retailers. Consumers can also search the site for a certain online store to read what other consumers think of this shop. The TrustPilot team monitors reviews and deletes fake ones. The online reviews service is doing very well, as it saw a 117% growth in its consumer reviewer base with over five million online shoppers now posting reviews on their site.
It provides more than 70,000 online businesses with so called TrustScores, which are based on more than six million reviews. According to TrustPilot, every month 2,000 new merchants and over 300,000 new consumers are added to its community. A part of its growth is due to a partnership with Google, as TrustPilot is a key provider of reviews to Google Shopping and Google’s Seller Rating program.
One way TrustPilot is making money is by giving online businesses the opportunity to highlight their positive reviews. They pay to install a TrustPilot widget on their site to collect reviews from consumers and try to augment sales. TrustPilot has business clients like Ebookers, Hostelworld.com, Expert and Vila.com. According to Peter Holten Mühlmann, TrustPilot’s founder and CEO, businesses can no longer hide behind ‘glossy content and fancy words’. “It’s all about how companies can build trust and manage reputation in a transparent way. TrustPilot’s unique technology links each consumer review directly to the purchase transaction. Combined with our intelligent fraud detection, the quality of the reviews on the Trustpilot platform is unsurpassed. This new investment will enable us to expand to new markets and continue to improve the power and potential of online reviews for consumers and our business customers.”