Adi Tatarko is the CEO and co-founder of Houzz, the leading platform for home design and remodelling, connecting both professionals and homeowners via mobile, local and social tools.
Life and education
Adi Tatarko is a 46-year old Israel-American businesswoman. Tatarko was born in Israel and moved to California in the late 1990s. Tatarko graduated from the Hebrew University Israel. Before founding and becoming the CEO of Houzz, Tatarko worked part-time as a financial advisor while taking care of her two sons.
Houzz History
Tatarko and husband, Cohen co-founded Houzz, a website and online community about architecture, decor and interior design, home improvement, and landscape design. In February 2009, Tatarko and Cohen launched the site as a result of their remodelling project.
In addition to finding it hard to reach their vision for their home, the couple found it challenging to find the perfect professionals for their project. What originated as a side project to help with the couple own home remodel later spread by word-of-mouth, and they started to receive emails from homeowners and home professionals outside the San Francisco Bay Area, urging them to open more categories on Houzz and develop to other areas. In fall 2010, Houzz eventually became a company.
Houzz released an app for the iPad in November 2010. In December 2012, they released the Android version of the app. By August 2013, the iPad/iPhone apps had been downloaded millions of times, and the website featured millions of pictures. Houzz announced that it had hired local managers and opened offices in Australia, Germany, and in the UK in January 2014. Thirty-five percent of the company’s site traffic already came from outside the US. Houzz announced in December 2014, its extension to the rest of Europe and into Asia, starting with Japan, given the progress of its first international launches and the demand for its platform.
A localized Houzz platform was accessible in Australia, France, Germany, Italy, Japan, Russia, Spain, and the UK as of July 2015. Houzz was live in Sweden and Denmark by the end of 2015, with more than 35 million monthly active users and more than one million active home professionals including architects, contractors, designers, etc. In August 2015, Houzz started its first national advertising campaign. Houzz launched localized platforms and apps for both Singapore and Ireland in April 2016 and said it had over 40 million unique users monthly worldwide. In May 2016, Houzz launched a localized experience for New Zealand, and in November 2016, for India.
Funding
The two were able to secure $2 million in first-round funding in September 2010 and started appointing staff for their office in Palo Alto. The round was led by Oren Zeev, from Orens Capital who joined Houzz’s Board of Directors. Houzz raised $11.6 million in a Series B round in 2011, led by Sequoia Capital and other investors. A VC at Sequoia and former senior executive at Zappos, Alfred Lin, joined Houzz’s board of directors. Houzz stated a Series C of $35 million in 2013, led by NEA and GGV Capital, with participation by Comcast Ventures, David Sacks, KPCB, and Sequoia Capital. Houzz said it had sealed a $165 million financing round in 2014, led by Sequoia with participation from current investors GGV Capital, New Enterprise Associates (NEA), Kleiner Perkins Caufield & Byers (KPCB), and Oren Zeev, as well as new contributors DST Global and T. Rowe Price. Houzz said it had sealed a $400 million Series E financing in June 2017, led by ICONIQ Capital. Other new investors include Wellington Management Company while current investors include Zeev Ventures, Sequoia, and GGV Capital also joined in the financing.
Business model
Houzz has a home products bazaar where it collects from sellers on transactions of a 15% commission. Houzz also charges its sellers various Non-Compliance Fees. Houzz also provides a premium subscription service for their brands to advertise on the platform and for home professionals. Houzz attends as a seller, purchasing products from manufacturers at wholesale and selling them to customers using a drop ship model.
Industry partnerships
Houzz opened a strategic partnership in June 2014, with The American Institute of Architects (AIA). The American Society of Interior Designers (ASID) partnered with Houzz in 2015, to raise public awareness on the influence and importance of interior designers. The National Association of Home Builders (NAHB) and Houzz declared a strategic alliance in January 2016, to help NAHB members use Houzz’s technology and marketing capabilities to join with a community of 35 million users engaged in constructing or restoring their homes. The company began Houzz Scholarships in November 2016, a program that helps the next generation of students studying landscape architecture, interior design, and architecture.
Acquisitions
In 2015, Houzz initiated its first acquisition, purchasing gardening and home advice site GardenWeb from NBCUniversal. Houzz stated that it had acquired IvyMark in February 2018, a startup that has developed a business management tool for design companies and interior designers. The tool allows furniture delivery scheduling, project management, and more.
Net Worth
Adi Tatarko has an approximate net worth of $300 million as of 2019.