- 1-click video chat API company Daily.co announced it raised $4.6 million in funding
Daily.co — a 1-click video chat API company — announced it raised $4.6 million. This round of funding was led by Jenny Lefcourt from Freestyle. While the round closed in January, it was actually announced this week.
Three new institutional investors Moxxie, Slack Fund, and SV Angel also joined the round along with several angels: April Underwood, Sarah Imbach, Ellen Levy, and Elizabeth Weil. Plus three prior investors also joined: Haystack, TenOneTen, and Root.
Daily.co co-founder Kwindla Hultman Kramer previously raised $2.5 million in 2016. And the company was able to fund and bootstrap itself through sales of a hardware product since then.
Through the sales of its video-conferencing hardware product and its SaaS subscription model, the company was able to fund its longer-term plan of launching a WebRTC-powered API.
After shifting away from hardware, Daily.co launched the video chat API in 2019. In the past six weeks, the company’s API usage has grown about 12 times.
To generate revenue, Daily.co charges a hybrid price, including a SaaS subscription fee and usage costs.