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Loom acquired for $975 million by Atlassian! 🤯
Why do you think Atlassian made that move? What's the benefit to them?
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Ayoub Mouhachtt
When I see such news, I know that I need to work more
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We're holding similar hopes for Feedspace (the one with the blue logo)😅. While I can't provide the link here, I'd greatly appreciate it if you could take a moment to search for it on Google and share your valuable feedback.
I've worked alongside QA teams where they used Loom to record the QA flows to give us engineers better feedback and a visual look at the issue. It works really well and with Atlassian scooping it up it'll better improve the workflow with teams that use the Atlassian stack for development and customer service.
There are a good deal of use cases for Loom that fits right in with the Atlassian products and as someone who uses their stack it'll be exciting to see it better integrated.
This is a truly interesting deal: Loom's last valuation was at $1.5 billion, the $975M sale therefore needs to be looked at in more detail. Over the years, significant investments happened with Kleiner Perkins and Sequoia Capital both securing board seats. The board composition became pivotal in this case btw.: 3 seats held by Loom's co-founders and one each by Series A and Series B representatives.
Despite Andreessen Horowitz hefty Series C injection, they missed a board seat. And this might be why they ultimately went home with a 1x (kudos to the founders for only accepting 1x liquidation preference on the invests btw.) ... still better than the +/- 35% write off of the exit, but definitely not what they expected.
For me, there are 2 success factors that founders should remember here: Loom's strategic board control and a wise 1x liq pref. This leads to a this being a great deal for (almost) every shareholder despite it being done at a lower valuation, with the founders earning +/- $300M (and employees +/- $100M fyi). Great example of an exit indeed.
Adding Loom to their suite of products makes sense since Covid, when people realized that asynchronous video product demos and interview / meeting recordings worked really well !
For product/project management, Atlassian offers software solutions all across the chain of value (coding tool, work chat, kanban with Trello, ticketing with Jira, project with Confluence…).
So adding loom is another weapon in its arsenal.
Looking forward to see how it evolves
Perfect one! It shows how video collaboration and communication will be a giant market in the world!
Atlassian buys Loom for $975 million? I guess they're tired of just writing 'tasks' and want to star in their own 'video tasks' series! 🎬
Use Loom almost daily, so excited for them and anxious to see what their future holds with Atlassian.
