Loom Workplace Video Message Platform Valued at $1.53 Billion
(Bloomberg) -- Workplace video messaging startup Loom Inc. after a new funding round is valued at $1.53 billion, more than quadrupling its valuation from a year ago.
The $130 million investment was led by Andreessen Horowitz, with participation from Kleiner Perkins, Sequoia Capital, Coatue Management, General Catalyst and Iconiq Capital.
Loom’s video platform allows people to send recorded video messages at work. Its customers include Netflix Inc., Atlassian Corp. and Twitter Inc. Loom said more than 10 million people across 120,000 companies use its product, with its active user base growing at a rate of 900% year-over-year.
Like Zoom Video Communications Inc., Loom has benefited from work-from-home conditions during the coronavirus pandemic. Unlike Zoom, Loom’s messages are pre-recorded and aren’t meant for real-time communication.
“It was a coincidence that it rhymes with Zoom,” said Joe Thomas, Loom’s co-founder and chief executive officer.
The San Francisco-based company was valued at $350 million in a funding round in May 2020, Thomas said.
Thomas said that there was a large market opportunity even before the growth of the remote workforce, but that the last year showcased the demand for its product. “It’s really effective to get the nuance of a perspective,” over video as opposed to text, he said.
Andreessen Horowitz saw opportunity in Loom because of “a disconnect between consumer video and video for business,” said David George, general partner at the venture capital firm.
Loom’s viral growth in the past year is unique for a business application, George said. “It tends to spread organically,” he said of their word-of-mouth growth.
With the new investment, Loom said it plans to invest in research and development and product innovation.
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