Led · Debt Financing · Dec 2008

Angie’s List collects consumer reviews on local contractors and doctors across more than 550 service categories. The company operates a consumer-focused review platform that aggregates user feedback on local service providers. Founded in 2005, Angie’s List is led by co-founder and CEO William S. Oesterle, CMO Angie Hicks and CFO Robert R. Millard. Recently the company received a $30M senior secured debt facility to address its near-term financing needs. The proceeds were used to refinance existing debt and provide working capital. The financing indicates a focus on stabilizing operations while continuing to provide its review services to consumers. Angie’s List operates a consumer-ratings service with more than 1.5 million members across 200+ markets in the U.S. and Canada. The Indianapolis-based firm employs about 400 people and reported membership growth of more than 50% in 2010, with plans to exceed that growth in 2011. The company plans to expand its group-coupons program, “The Big Deal,” into additional markets to capitalize on the online daily-deals trend. Angie’s List has been raising private capital since 2005 and is privately held. The 16-year-old company has received more than $150 million in private investment since founding. Recent prior financings include roughly $25 million raised last year, including a $22.5 million equity financing led by Wasatch Funds and other investors. Angie's List operates a consumer-focused online reviews platform and also offers a call-in service and a monthly magazine. The company says it serves more than 1 million paid members. It announced a $2.5 million additional financing injection to its most recent institutional round. The new capital will be used to expand its Health and Wellness consumer reviews product and grow its "The Big Deal" local group coupon program. The company expects to offer local group coupons in more than 50 markets by the end of 2010. Angie's List was founded in 1995 and has raised $25 million in venture capital this year after the extension. Angie’s List operates a subscription-based consumer reviews site for doctors, contractors and other local service companies, positioning itself at the intersection of local search and user-generated content. The company enforces non-anonymous postings and bars service providers from reviewing themselves to differentiate its content. It began in 1995 and serves more than 1 million paid members, offering access via its website as well as call-in service and a monthly magazine. Financially the company is privately held and has raised significant outside capital, bringing total tracked financing to $91 million. Management plans to use new capital to expand its Health and Wellness consumer reviews product and to scale its “The Big Deal” local group coupon program. The Big Deal is expected to be offered in more than 50 markets by the end of 2010. Angie’s List operates a subscription service that collects member-rated reviews of local service providers and enforces quality via human review and a live customer service center. The site prohibits anonymous reviewers, does not allow companies to add themselves, and runs a public “Penalty Box” for businesses that ignore complaints. Services include an offer to contact companies on members’ behalf to resolve disputes and a mailed magazine included with subscriptions. The company charges about $15 per month or $50 per year, which the article cites as a possible drag on faster growth. Angie’s List reported adding 150,000 users in the past eight months, bringing its total to roughly 750,000 members. The company has mentioned a possible expansion overseas but has not disclosed specific plans for the new funds.