Customer review business Trustpilot has secured follow up commitments from existing backers SEED Capital Denmark and Northzone as well as attracting Index Ventures.
Trustpilot provides two ways to source reviews of companies – through review invitations that are sent directly to online consumers by Trustpilot, and through end user contributions on the Trustpilot portal. The company says it has developed ‘strong positions’ in UK, France, Germany, Netherlands, Italy and is now entering the US
Geneva, London and San Francisco-headquartered Index Ventures has led the £8 million round, with deal lead Ben Holmes describing the company as a ‘brilliant’ concept.
Speaking to GrowthBusiness about the investment, Holmes, partner at Index Ventures, comments, ‘As online becomes the dominant way people discover, select and buy services, having a trusted ratings service becomes critical.
‘The Trustpilot proposition clearly resonates strongly with both consumers and online merchants. It has also shown strong traction outside its home market, clearly demonstrating its global potential.’
Holmes says that by supporting Trustpilot, Index Ventures is continuing with a trend of backing Scandinavian businesses. Other Nordic companies in its investment portfolio include iZettle, Rebtel, Milestone Systems and Skype.
Trustpilot has now raised €15 million of venture capital investment. Having been founded in 2007 in Denmark, the business secured SEED Capital Denmark as its first investor. The Danish firm bankrolled the company during its first two years of operation and then took part in a Series A round in September 2011 when Northzone joined as a backer.
Peter Muhlmann, CEO of Trustpilot, adds, ‘We want to create the best, most trustworthy website for consumers to share their online shopping experiences and make it the global standard in customer reviews.
‘We’re thrilled to have such a strong group of investors support that mission and this funding provides us with the opportunity to achieve our goal even faster.’