What to do when Google gives your competitor $100 million
As founder of an Internet-based events marketplace I have always loved Google unquestionably because without them my company would not exist. For years, through the magic of organic SEO, we’ve derived the vast majority of our customers from Google. Put simply: without Google, there would be no GigMasters.
My devotion to Google was severely tested this past summer, though, when the equity venture wing of the company, Google Capital, led a $100 million investment in a company that could easily become a competitor of ours, Thumbtack, a general services marketplace formed just a few years ago. With their vast war chest of cash, I quickly watched Thumbtack buy their way to the top of Google searches via AdWords.
For those that aren’t familiar with Thumbtack, they are a site that connects you with plumbers, painters, and tennis instructors among other things. It hasn’t been a direct competitor of ours — our focus is on entertainment and event bookings. Most folks don’t typically book their wedding entertainment from the same place they hire a plumber. Flush with cash, however, Thumbtack isn’t going to let that stop it. It has already started spending in the events space — listing wedding bands right along with electricians.
