Video conferencing companies have attracted millions of dollars in venture capital, as everyone from startups to large established companies like Cisco Systems Inc. try to make this technology work in the cloud.
Add to the mix Zoom Video Communications Inc., which has raised another $30 million to combine Web conferencing and video conferencing into what its investors say is one of the fastest-growing business software companies yet.
“We were concerned that we would not find anyone who’d be able to break out without raising hundreds of millions of dollars…and as we started getting access [to Zoom]we couldn’t believe what we were seeing,” said Emergence Capital Partner Santi Subotovsky, whose firm is leading the new round. “With Yammer and Evernote and HootSuite, it took them seven months to get from a million to two million users, and it took Zoom five months to achieve that milestone.”
Also, he said, Zoom is profitable, something that Chief Executive Eric Yuan has insisted on, and “the company didn’t need the amount of money it currently has to get to an IPO. Think about it–how many companies grow 20% month over month and remain profitable?” Mr. Subotovsky said.