Home Breaking News NY-based Professional Video Platform Vimeo Raises US$ 150M

NY-based Professional Video Platform Vimeo Raises US$ 150M

Professional Video Platform Vimeo

New York-based video hosting, sharing and services platform Vimeo raised US$ 150 million in new equity funding on 6 November 2020.

The funding round was led by Thrive Capital and GIC. The investment values the software-as-a-service company at US$ 2.75 billion. Vimeo’s parent company, Interactive Corp., is considering spinning off the company.

“Given Vimeo’s success, and investor adulation for the Software-as-a-Service (SaaS) category generally, we expect Vimeo’s access to capital inside of IAC will be much more expensive than access to capital outside of IAC, and that capital will be helpful to enable Vimeo to achieve its highest ambitions. We just tested Vimeo’s ability to access capital with a small private fundraise to bolster Vimeo’s balance sheet and to repay the capital to IAC,” said IAC CEO Joey Levin.

Vimeo’s revenue in the 3rd Quarter grew by 44 percent year-on-year to US$ 75.1 million. It had a good EBITDA of 3.4 million dollars in its first quarter as well. The Match Group (owner of a number of dating services) separated itself from the IAC, distributing IAC ownership to shareholders.

About Vimeo

Professional Video Platform Vimeo

Founded in 2004, by Jake Lodwick and Zach Klein, Vimeo is a professional video platform that provides powerful tools to create and market high-quality, impactful videos. Vimeo sells video tools to companies and other enterprises instead of trying to compete for YouTube as a consumer video destination. A free video message product known as Vimeo Record was also launched by the company. 

The company claims to have over 1.5 million paying subscribers and over 3500 enterprise clients, including Amazon, Starbucks, Deloitte, Zendesk, Rite Aid, and Siemens.

“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,” said Vimeo CEO Anjali Sud.

About IAC

IAC invents or acquires new products and brands. IAC today operates Vimeo, Dotdash and Care.com, among many others, and has majority ownership of ANGI Homeservices, which includes HomeAdvisor, Angie’s List and Handy. It is headquartered in New York City and has business operations and satellite offices worldwide.

What Investors have to say

“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,” said Miles Grimshaw, General Partner, Thrive Capital.

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Komal writes about the startup ecosystem on VCBay. She is an Economics Hons. graduate from Miranda House, Delhi University, and is passionate about the world of entrepreneurship and finance.

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