- Vimeo — a video platform company run by IAC (NASDAQ: IAC) — recently announced it raised $150 million in equity investment from technology investment firm Thrive Capital and GIC
Vimeo — a video platform company run by IAC (NASDAQ: IAC) — recently announced it raised $150 million in equity investment from technology investment firm Thrive Capital and GIC. This round of funding values Vimeo at $2.75 billion.
And with this round of funding, it will enable Vimeo to drive deeper investments in R&D, sales, and international expansion. Vimeo’s cloud platform was designed to be the single video solution for every business —ranging from local SMBs to global enterprises — to create engaging videos, collaborate with colleagues and broadcast live events securely to audiences around the world.
Over the last year, Vimeo materially expanded its product suite with the launch of Vimeo Enterprise (internal broadcast and collaboration tools for larger organizations), Vimeo Create (a quick and easy video maker for SMBs), and Vimeo Record (a free video messaging tool for teams).
Vimeo also saw a significant increase in demand for its software in 2020. And since the pandemic, the platform has scaled to over 200 million users globally and the company is seeing particularly strong traction with its enterprise and collaboration products with over 3,500 enterprise customers including Amazon, Starbucks, Deloitte, Zendesk, Rite Aid, and Siemens, and 1.5 million paying subscribers — of which almost 10% are currently using multiple seats per account.
Vimeo was profitable in the third quarter and it grew overall revenue 44% year over year. IAC CEO Joey Levin said that the company started contemplating spinning Vimeo off to shareholders. Due to the tremendous growth of Vimeo, Levin acknowledged that Vimeo’s access to capital inside of IAC will be much more expensive than access to capital outside of IAC. And that capital is going to be helpful to enable Vimeo to achieve its highest ambitions.
KEY QUOTES:
“Our goal is to radically simplify how businesses create and share video, with tools that are far more intuitive and cost-effective than they’ve been historically. We’re energized to access additional capital to pursue this enormous opportunity with the full focus and scale of the Vimeo platform.”
— Anjali Sud, CEO of Vimeo
“We are thrilled to partner with Vimeo and help accelerate its unique position as the single platform that can serve every individual’s, team’s and enterprise’s video needs, from creation to marketing, corporate communication, live events and more.”
— Miles Grimshaw, General Partner, Thrive Capital.
“Fourteen years ago, we acquired Vimeo as part of a small collection of assets for very little capital, and through the creativity, grit, and sheer talent of a group of leaders at Vimeo, the business has become a real leader in a large and growing market, and in control of its own destiny.”
— Joey Levin, CEO of IAC
