Startups were once big business in the investment world, but they have unfortunately dipped in quality and reliability in the last few years. The reasons for that have been complex, but one company has bucked that trend after receiving a $50 million grant to increase their market reach. This company, Handy Inc. is a great example of a little-company-that-could.
Who Is Handy Inc?
Handy Inc. is a cleaning and handy man provider service that lets customers connect with service people in their area. Rather than force the customer to make these connections on their own, Handy Inc. will provide them with a list of providers, including their expertise levels, reviews on their abilities, and direct communication techniques.
This new “on-demand” cleaning model isn’t unique to Handy Inc., but they have stood out from their competitors by offering one of the fairest services on the market. For example, their service providers are considered employees, not contractors, making them get better treatment than Handy’s many competitors.
How Did Handy Beat Investor Skepticism?
Due to the various struggles in the cleaning industry, many investors were very skeptical about the success of Handy.com. Its two co-founders stated: “Things were not particularly good at that point (2015). We were seeing other companies around us struggling to raise capital. There was talk of down rounds. There was talk of unicorns falling.”
However, receiving its $50 million of funding from Series C helped make them a more realistic and profitable potential business. While it did cause some concern about the growth of businesses similar to them, they were able to take that money and invest it in expanding into more markets, helping to increase their potential spread and become more successful.
And they did: by the middle of 2016, they grew into a $1 million a week business. This kind of money helped them make over $50 million for the year and has seriously expanded their growth potential.
They’ve been able to pay back many of their loans and have attracted other investors and venture capitalist to their quirky little firm. As a result, they can serve as a useful reminder of the power of staying true to your business model and the strength of startup investment.