Angie's List, a home improvement and contractor online listings and review service, continues to gain momentum from investors. The company this week announced it has received $18 million in venture debt from Lighthouse Capital Partners. This follows the $35 million Battery Ventures invested for a minority stake in Angie's List back in April. Other investors include Aquent and BV Capital.
Angie's List expanded its offerings in March from covering home-focused companies, such as plumbers, to health care providers. The company plans to expand those offerings on an international scale as well.
Thousands of consumers rate and review local service providers in more than 400 different categories on Angie's List. The company boasts more than 750,000 users in 125 major U.S. cities.
This latest round of financing just shows what a strong business model Angie's List has. Combining user-generated content with a traditional search functionality has proven to be a very successful combination. Before the web, referrals were an important part of the service provider selection process, so it's not a surprise that Angie's List's ratings and reviews are so well received. And as more consumers become comfortable with the entire concept of user-generated content, the number of reviews available for others to view will likely grow at a rapid pace.
It's exciting to know that Angie's List plans to grow internationally, but hopefully the company will expand further in the U.S. as well.