Loom

Loom makes software for recording the screen and camera together, editing and transcribing the result, and sharing it as a link, so teams can explain work without a live meeting. Vinay Hiremath, Shahed Khan and Joe Thomas founded the company in San Francisco in 2015. It released a Chrome extension in June 2016, a desktop app in August 2018, and mobile apps in 2020 and 2021. The company ran as a remote team with its headquarters in San Francisco and an office in New York. In June 2021 it opened a software development kit so other applications could embed a Loom record button.

Loom closed a $600,000 seed round in October 2016 led by the 1517 Fund. Kleiner Perkins led a Series A of nearly $11 million in February 2019, and Sequoia Capital led a $30 million Series B that November. In May 2020, during the shift to remote work, Loom raised a $28.75 million second Series B from Sequoia and Coatue at an estimated $350 million valuation. On May 20, 2021, it announced a $130 million Series C led by Andreessen Horowitz, with ICONIQ Growth joining Kleiner Perkins, Sequoia, Coatue and General Catalyst. That round valued it at $1.53 billion. Total venture funding came to about $200 million.

When the Series C closed, Loom reported 12 million users across more than 200,000 companies. Atlassian announced the acquisition on October 12, 2023 and said customers were creating almost 5 million Loom videos a month. In its quarterly filing, Atlassian put the price at about $975 million including Loom's cash, made up of about $880 million in cash and the rest in Atlassian equity awards subject to vesting. The deal closed on November 30, 2023, and Loom now operates as an Atlassian product.

Loom is an example of a pandemic-era valuation that did not hold. The 2021 Series C priced it at $1.53 billion, and the sale two and a half years later came in at about $975 million, roughly 36% lower. Seed and Series A investors who entered in 2016 and 2019 still exited eight years after founding at many times their entry prices. Andreessen Horowitz and ICONIQ Growth, which came in at the top of the market, likely got back less than they paid, depending on any liquidation preferences, which were not disclosed.