Investing in Loom

David George

Posted May 20, 2021

Many of the fastest growing and largest consumer internet platforms are video oriented: Facebook, Instagram, YouTube, Netflix, Snapchat, and TikTok. U.S. consumers watch 100 minutes of online video per day, and most of this is asynchronous – think YouTube or Instagram videos, rather than Facetime. However, enterprise behavior has woefully lagged behind: creation tools offer a poor user experience, resulting in underutilization, and the videos end up siloed (and often lost) across various content repositories. The business world finally embraced live video tools for hosting meetings, conferences, and whiteboarding sessions during the pandemic, but there hasn’t been a great tool for asynchronous communication in the workplace until now.

 

The list of use cases, across all different functions inside a company, is thousands long. Engineering and product users create Looms for product reviews, demos, and training. Marketing, sales, and customer success teams have developed engaging new collateral with higher conversion through Loom. As of February 2021, Loom surpassed 100 million videos recorded (900% growth year-over-year). Executive leaders and people operations at Atlassian, Netflix, and Twitter use Looms to communicate new initiatives company-wide. We’ve even started to see investor pitches and diligence materials prepared in Loom. With a Net Promoter Score of 72, it is clear that customers love the product and experience (a few of our favorite Loom user tweets are here, here, and here).

Most Loom users first hear of Loom by receiving one. There are few products that are so inherently viral in the workplace, and Loom now reaches 10 million users and 120,000 companies across 192 countries. The company also grew revenue by more than 1,100% this past year and active users have grown 900% year-over-year. Engagement and retention are strong, and Loom has shown the ability to layer on top-down enterprise sales to their bottom-up, viral traction. Looms are free to receive and record, and users upgrade to the paid tiers for expanded options, including unlimited, higher quality video, highlighting and  drawing, custom branding, calls to action, and enterprise-grade security features and integrations. Revenue is growing faster than users, meaning customers are realizing the value of upgrading from Loom’s free solution to paid.

We’ve gotten to know Loom cofounders Joe and Vinay over the last few years and have followed their journey from creating Loom the product to building Loom the company, and honing their vision for Loom to become “the destination for video collaboration at work”. Joe and Vinay have a great blend of intuition for building product, technology, and brand, and are rapidly scaling their high-growth organization. We are excited about the future for Loom and to partner with Joe, Vinay, and the Loom team!

 

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