Trustpilot Secures $25 Million Funding to Accelerate Growth
Global expansion in 2013 saw opening of offices in London and New York
NEW YORK & LONDON & COPENHAGEN, Denmark, January 13, 2014-- Trustpilot, the leading review community for online shoppers, today announces it has raised $25m in Series C financing. This comes following 117 per cent growth in its consumer reviewer base with over five million online shoppers now posting reviews on Trustpilot. Global expansion also led to new offices in New York and London.
The latest $25m deal round was led by DFJ Esprit in London and DFJ in Menlo Park, Calif. with participation from all existing investors; Index Ventures, Northzone and Seed Capital. DFJ was an early investor in Skype, which was co-founded by a Danish entrepreneur, Janus Friis.
With consumers increasingly looking to friends and peers for guidance on purchasing decisions, Trustpilot provides companies with the tools and technology necessary for efficiently integrating reviews as part of their communication with customers.
Commenting on the deal, DFJ Esprit partner Krishna Visvanathan said: “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. Trustpilot has created a solid concept for establishing a global platform for trusted shopping reviews to the benefit of millions of consumers that yearn for great online retail experiences. We see strong potential for Trustpilot to become the global de facto standard in company reviews.”
Trustpilot now provides over 70,000 ecommerce businesses with TrustScores based on more than six million reviews, adding 2,000 new merchants and over 300,000 new consumers to the Trustpilot community every month. Trustpilot’s business customers include Travelocity, Mazuma Mobile, B&H, lastminute.com, Express Watches and ebookers and it is a key provider of reviews to Google Shopping and Google’s Seller Rating program.
Peter Holten Mühlmann, Trustpilot’s CEO and founder, comments: “The consumer has more power than ever to make or break a business and the impact of online reviews is disrupting the way companies think about communication. 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.”
Originally founded in 2007, Trustpilot currently has 160 employees across Copenhagen, London and New York. Peter Mühlmann was recently named Danish Entrepreneur of the Year by Ernst & Young and Trustpilot was awarded 2013 winner of the ‘Danish start-up of the year’ at the Next Web Start up European Awards.
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