Trustpilot, a rating service for online shopping, announced it has received €3.3 million in funding from two Nordic venture funds – SEED Capital and Northzone. The company allows a user to look at a single metric to see if they will probably have a pleasurable shopping experience. Aside from the value it provides between customers, the service is also helpful for online businesses to communicate their strong customer service by adding independent reviews to their site.
The service seems pretty similar to other review sites out there. In addition, Trustpilot also provides additional services to businesses, like gathering automatic feedback, statistics, and inclusion in Google's seller ratings.
Their key metric, TrustScore, is calculated to be less exaggerated than a simple average; if there are only few reviews, the score will not deviate a lot from the median, seven. As more reviews are written, the formula functions more and more like a weighted average, where new reviews count more than old reviews.
In January we covered Trustpilot's funding of 5.5 million Danish Kronor by SEED capital, and the service has seen a large amount of growth since then. According to their stats, the company has already seen 5,411,118 reviews of 81,948 online businesses.
The company is a dominant player in its native Denmark, and has seen some traction in Holland, France and England. Trustpilot plans on spending a good chunk of the funding on marketing operations to become a larger player across the world. “Our ambition is clear. We will be the most powerful global player in the market for online user reviews of online shopping," said Peter Holten Mühlmann, CEO at Trustpilot.