Trustpilot, a leading provider of trusted company reviews, has closed a €10 million funding round led by Index Ventures, joined by existing investors SEED Capital Denmark and Northzone. Launched in Denmark in 2007, the service has seen rapid adoption with already more than 6 million reviews of over 100,000 individual merchants. The company has developed strong positions in UK, France, Germany, Netherlands, Italy and is now entering the US.
Trustpilot today employs about 100 people in its Copenhagen headquarters. The first investor was SEED Capital Denmark who funded the company the first 2 years and helped develop the business platform. To date the young company has raised €5 million, most recently having closed its A round in 2011 with Northzone and SEED Capital Denmark.
Trustpilot enables two ways to source reviews: through review invitations that are sent directly to online consumers by Trustpilot, and through end user contributions on the Trustpilot portal. The benefit for businesses using Trustpilot is that they can backtrack each customer review to the transaction on which the review is based. This helps businesses pinpoint where and how to improve customer satisfaction. According to the Nielsen Global Online Consumer Survey, online reviews are considered one of the most trusted and relevant form of advertising. Trustpilot studies show that displaying reviews may increase conversion rates by more than 20%. Check out the video below this article to find out more.
Peter Mühlmann, CEO of Trustpilot who founded the business in 2007, said: “We want to create the best, most trustworthy web site 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.”
Ben Holmes (partner at Index Ventures) stated: “The Trustpilot concept is a brilliant one which creates substantial value both for merchants who wish to highlight their service credentials and for consumers who want to identify trustworthy service providers in an increasingly crowded online world. The Company has executed the vision excellently and established a strong position in multiple geographies. We are delighted to be joining that Company as an investor and look forward to help them grow the Global leader in this category.”