Zoom Cloud Video Conferencing Raises $30 Million
Cloud video conferencing company Zoom has raised $30 million in Series C funding. The investment more than doubles the funding that Zoom has received in prior rounds.
Zoom will use the funding to scale its sales and marketing teams, and expand its business globally, it said. It also said that it is seeing triple-digit growth for its business-focused cloud video collaboration platform, which is delivered as-a-service. Specifically, it has increased its customer base from 4,500 to 65,000 companies since 2013, grown meeting participants from 3 million to 40 million individuals, surpassed 1 billion meeting minutes and gained 2,500 educational institution customers
"Businesses aren't fully satisfied with the status quo in video conferencing," said Eric Yuan, Zoom's CEO and founder, and a former executive with WebEx. "Zoom's cloud-based video conferencing has a richer feature set and better user experience at a much more affordable cost."
The company has also added functionality to the platform, to include iPhone/iPad screen sharing and co-annotation; the Cloud Room Connector, which connects H.323/SIP video endpoints to the cloud; ZoomPresence, a software-based conference room system built on Mac and iPad; and the launch of Zoom Video Webinars, which can feature 25 video panelists and 3,000 viewers.
The space is a hot one: Markets and Markets is predicting that the global cloud collaboration market will grow from $10.5 billion in 2014 to $21.4 billion by 2019, at a CAGR of 15.3 percent from 2014 to 2019.
“Consumers now interact with businesses primarily through social, mobile, and online systems and hence there is a requirement to provide better and easy access to ensure uninterrupted communication,” the firm said. “The companies providing cloud collaboration solutions are looking forward to make new technologies, investments and upgrades to position themselves best in the market and capture the cloud collaboration market.”
The round was led by Emergence Capital, with participation from Zoom's existing investors Li Ka-shing's Horizons Ventures, former Yahoo! CEO and co-founder Jerry Yang, Qualcomm Ventures, and medical entrepreneur Patrick Soon-Shiong.
"Zoom is a perfect fit with Emergence Capital's mission of investing in the cloud visionaries who are building the most important business applications,” said Santi Subotovsky, partner at Emergence Capital. “The company's explosive growth over the past year shows that they are primed to emerge as the industry's market leader, and Eric's key role at WebEx makes him the ideal entrepreneur for this opportunity. Zoom truly is one of the most capital efficient and fastest growing SaaS companies.”
Edited by Maurice Nagle