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Media - Friday, April 11, 2008

Angie's List Sells Minority Stake for $35M

If you listen to NPR much you have surely heard the radio sponsorships for Angie's List, a source for local service provider ratings. The startup today announced that it has sold a minority stake to Battery Ventures for $35M.

Angie's List was founded 13 years in Indianapolis by Bill Oesterle while Angie Hicks worked as in intern in 1995. Angie Hicks who passed through Harvard Business School in 2000 while keeping the list alive and is now CMO. Like Consumer Reports, Angie's List charges consumers to see reviews.

Angie's List says it is doing $14M in annual revenues and has 200 employees. It gets there by charging $6.95 a month, or $53 annually.

The company recently began collecting ratings on the health care industry, including reports on doctors, facilities and insurers.

The consumer services review space has been a tarpit for a number of VC-backed startups including Judy's List. Our takeaway is that sites like Craig'sList and Angie's List require a lot of patience and persistence and after some years finally get to critical mass where they begin to take off. VC's can't stomach it.

Going the reverse route of Consumer Reports, Angie's List has launched a magazine companion.

Solid Angie's List Commercial

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