Horses for Courses: Why Waldo’s founders are the best bet in local

There is no shortage of good ideas in the world. But what any VC will surely agree is that there is a shortage of great teams, with the relevant expertise and inclination to execute against most opportunities. And so it is that when you encounter such a great team, you’ll move heaven and earth to work with them.

With this, I could not be more thrilled to announce Upfront’s is leading a $5 million investment in Waldo, an exciting new photo-finding platform going after the highly fragmented commercial photography category. Waldo was founded by Rodney Rice and Michael Beaudoin who, in no particular order, are the brains and the brawn behind ServiceMagic (later renamed HomeAdvisor). Together, they shepherded this business from a mere idea in 1999 to $250 million in profitable annual revenue in 2012 with an exit to IAC along the way. For good measure, they also were part of the early team behind Einstein’s Bagels.

It’s not just because Rodney and Michael built a successful business that I’m excited to work with them. It’s that they did so in the carcass-littered category of SMB-to-consumer local marketplaces, while at the same time navigating two boom / bust economic cycles. Along the way, they demonstrated the kind of commitment to methodical iteration, data-driven decision making, and unwavering grit that is required to excel in the brutal local arena.

I had the privilege of working alongside Rodney and Michael while at IAC, so when they came to me last year to say they were getting the band back together and planning to tackle another similarly fragmented and yet massive local marketplace problem, the decision to jump on board was not a difficult one.

Waldo is still in its early stages, but Rodney, Michael, and their team have been hard at work for months applying the same sort of testing and iteration that led ServiceMagic to success. Though it’s a bit too early to reveal specifics, I’m confident that they’ve found a compelling solution to the ubiquitous problem of life’s most memorable events being interrupted by cell phones and selfie sticks.

Like the home services contractor market in 1999, the photography market faces similar inefficiencies, fragmentation, and lack of transparency today. Adding to its appeal, this category is a $10 billion market in 2015, made up 80% of sole-proprietors and SMBs. Much like ServiceMagic empowered home services professionals to more effectively ply their craft, Waldo will bring the power of the gig economy to current and aspiring professional photographers, enabling them to monetize their craft in new and innovative ways, while dramatically increasing increase their sell-through rates.

You’ll certainly be hearing more from this team in the coming weeks and months. But don’t expect to hear much until Waldo is a polished and well-oiled machine. Anything else, wouldn’t be their style…which is exactly why we invested.