recently, cloud video conferencing service provider Zoom announced that it has completed $100 million D round of financing, the investor Sequoia capital. After this round of financing, the company reached $1 billion valuation, the success among the listed.
At the same time, the company also announced a product update, allowing users and third parties to create applications on the Zoom platform
previously, the total amount of financing has reached $45 million 500 thousand in the previous quarter also maintained a positive cash flow. Company CEO Eric S. Yuan pointed out that they did not want to seek financing, Sequoia Capital initiative to come, said he would like to invest in a video conferencing company, after the investigation and understanding of the selection of Zoom.
Sequoia Capital spokesman said in an interview: "for many years, we have been watching the video conferencing industry, because this is a huge new market, but did not find a truly popular products. The situation has not changed until Zoom appears on our investment list."
Eric said that at the beginning of Sequoia Capital to contact him, he decided to invest a large amount of cash, and Sequoia Capital to find a partner with a partner. In fact, after the transaction, the partner Carl Eschenbach will join the board of Zoom.
investment, Sequoia Capital is the most fancy Zoom founder. Eric experienced, has served as vice president of WebEx. 2007, WebEx to $3 billion 200 million acquisition by CISCO. Although the price is high, but Eric said he made a mistake.
because at that time, CISCO is just a simple network Hard Suits Inc. He believes that CISCO’s team completely do not understand WebEx or SaaS, eventually turned WebEx into a social networking product. It is worth noting that, since then, CISCO through a strong acquisition strategy, began to enter the field of software.
2011, Eric decided to set up a company to solve the problem of user feedback. Part of the WebEx core code, the code was written in 1998. In addition, he hopes to rely on the cloud, the development of a new video service. Until now, WebEx is a strong opponent of Zoom.
the dream of most cloud service providers, is to extend its services as a platform for users to develop products on this platform. Salesforce launched Force.com in 2008, becoming the first company to adopt this approach.
almost all SaaS companies want to become such a platform, but the key is whether there is sufficient size. As far as Zoom is concerned, it has as many as 450 thousand customers, of which about 5800 are educational institutions, so it is absolutely possible to take advantage of this scale