Mike: I’m happy to announce we’ve secured $6,000,000 in Series A financing from an amazing group of investors! What would an announcement like this be like without an awesome video?
Our journey to this point has been nothing short of remarkable – what we’ve achieved would simply not be possible without you, our amazing network and even more amazing customers.
Rather than create a formal press release, Devon, Matt and I have decided to offer some insight into where we spent our seed capital ($1.65MM) and what we plan to do with the Series A dollars in order to continue to provide value to Vidyard’s customers and create valuable solutions for the marketplace.
First and foremost, Vidyard is the world’s leading Video Marketing platform. Our commitment? To help our customers drive growth and revenue through the utilization of video.
In this we are unwavering – our vision and roadmap are defined and driven by this message.
Mike: I went to Silicon Valley at the end of September to update our investors, and meet with our customers. I consequently started thinking about and planning our Series A financing – my goals were aggressive.
October in the Kitchener-Waterloo region (Vidyard HQ) brings KW Oktoberfest, the 2nd largest Oktoberfest celebration in the world next to Munich, Germany. Communitech’s Techtoberfest event brings tons of startups, investors and great people into the community to celebrate.
At this event, Devon and I had an excellent opportunity to chat with Derek Smyth, John Ruffolo and Sid Paquette of Omers Capital about the company, our recent growth and awesome team.
Less than 2 weeks after my presentation, and some discussions with the Omers crew during the event, we had a pre-emptive term sheet in hand. The speed at which Omers moved was phenomenal; we closed the round in just under 4 weeks.
iNovia Capital also saw and embraced the enormous potential in Vidyard and supported the second part of the deal alongside of long-time mentor and friend, Jeff Clavier at SoftTechVC. We also had participation from Jill Rowley, the Mother of Social Selling and Marketing Automation. We’re elated to add her to the team!
The Seed Round
Mike: This is written in true CFO form, brief and to the point :P.
Matt: Vidyard realized its first MRR goal in April 2012. The following 9 months saw a 400% growth in MRR resulting in a milestone realized in January 2013 where Vidyard’s MRR exceeded its total fiscal 2012 annual revenues. Number of customers grew 154% over the same period.
Seed investment received in fall 2011 was carefully and strategically used over 16 months to win customers and prove market fit. Staffing was the most significant use of the seed funds (mainly R&D, Customer Success, and Support), followed by service delivery tools – common in a SaaS business. The seed investment permitted Vidyard to grow from a team of 4 at the time of seed investment to a team of 14 at the time of raising its Series A. The team of 14 included some senior hires such as a CFO and VP Marketing, brought on in April and October 2012 respectively.
Our Series A investment will be used in similar strategic manner with focus on team expansion, Customer Success/Support, and internal sales teams. New office space is also on the list in order to accommodate the growth of the team from 14 to ~35 in the coming year as well as expanded R&D and marketing budgets.
The Next Steps
Marketing and Sales
Mike: Vidyard offers our customers ways to evaluate and define ROI in video marketing – something that’s not been done in an effective or meaningful way to date. Vidyard defines a new category in video marketing– we’ll be investing heavily in the creation of content and metrics invaluable to our customers. We are the resource for businesses investing in video marketing initiatives.
Our investment in a marketing team capable of reaching out and supporting these communities, will help marketers wrap their heads around the inherent complexities of Video Marketing.
Scaling our Customer Success Team is also important in the value we provide. Post customer acquisition support and guidance guides our customers to get the most out of the basic and advanced tools of the Vidyard Video Marketing Platform.
Engineering, Development and Product
Devon: Much of the new funding will be used to continue building out the Vidyard platform as the world’s first and leading video marketing platform. We’re growing our product team with world-class engineers to help us deliver on that promise. New product developments generally fall into 3 categories:
1. The tools to build incredible video experiences
We’re inspired by the many ways our clients deliver video using the Vidyard Platform, and the goal is to continue to build tools that make these experiences easy for our customers to produce exceptionally engaging experiences for their viewers
Our customers can expect:
- Continued delivery of an exceptional developer’s toolkit
– New ways of integrating and delivering video across branded sites and channels
– Continued granularity and reporting into the performance of video initiatives
2. Integration with best-in-class tools
We understand marketers don’t work in a silo. Through our experience building Eloqua and Hubspot integrations, we’ve helped marketers unlock the black box of video and deliver rich campaigns using Vidyard with these platforms. Vidyard delivers:
- Integration with class-leading analytics solutions, delivering the performance & results of all your marketing efforts in a single location.
– Integration with cross-functional tools, allowing other internal teams to tap into the power of video marketing efforts
3. Exceptional performance and stability
Vidyard videos are viewed millions of times a day. Behind the scenes, Vidyard’s focused on improving the speed, security and reliability of the Vidyard Platform to serve the needs of our client base.
Mike: To everyone watching or reading this – thanks for your support. Our growth and success to date would not be possible without you.
To the future and to Video Marketing with Vidyard,
Michael Litt, Co-Founder and CEO, Devon Galloway, Co-Founder and COO and Matthew Hodgson, CFO