Vimeo raises $300 million, valuing company at more than $5 billion
Vimeo, the 16-year-old video service that started as a platform for indie filmmakers, has raised $300 million in equity from T Rowe Price and Oberndorf Enterprises at a valuation of over $5 billion, the company said Monday.
Why it matters: Vimeo has witnessed incredible success since starting to lean more heavily into software sales a few years ago. The company has nearly doubled its enterprise value in less than three months.
- Vimeo's parent IAC announced plans last year to spin off Vimeo early in the second quarter of 2021.
Catch up quick: Vimeo launched as a platform for independent filmmakers to company began pivoting from being a video service to an enterprise software platform three years ago and today, it's one of the fastest-growing enterprise video companies in the country.
Details: The new investment occurred in two instances, Vimeo said. An initial $200 million raise gave the company a $5.2 billion pre-money valuation and second $100 million at a $5.7 billion pre-money valuation.
- "Vimeo is the quintessential IAC success story,” said IAC CEO Joey Levin said in a statement. "With patience, discipline, and ambition, Vimeo has transformed from a tiny seed to a large global enterprise making its mark on the world, and Anjali Sud (Vimeo's CEO) is an exceptional leader."
- The effort comes months after Vimeo raised $150 million from outside investors to boost the software licensing business that it launched in 2018. The round in November valued Vimeo at $2.75 billion — 10 times the company's revenue.
- Vimeo was profitable in the third quarter and grew revenue 44% to $75 million for Q3, according to IAC's latest earnings release.
Vimeo began doubling down on its enterprise software licensing business, which has contributed to much of the company's growth, in 2019.
- The company now has over 3,500 enterprise customers, including Amazon, Starbucks. Deloitte, Zendesk, Rite Aid and Siemens.
- The company has over 200 million users across more than 190 countries. Roughly 1.5 million of those users are paying subscribers, Vimeo says.
The big picture: Software firms that help other companies communicate are booming thanks to pandemic-driven remote-work.