Zoom Communications

Early years

Zoom was founded by Eric Yuan, a former corporate vice president for Cisco Webex. He left Cisco in April 2011 with 40 engineers to start a new company, originally named Saasbee, Inc. The company had trouble finding investors because many people thought the videotelephony market was already saturated. In June 2011, the company raised $3 million of seed money from WebEx founder Subrah Iyar, former Cisco SVP and General Counsel Dan Scheinman, and venture capitalists Matt Ocko, TSVC, and Bill Tai.

In May 2012, the company changed its name to Zoom, influenced by Thacher Hurd's children's book Zoom City. In September 2012, Zoom launched a beta version that could host conferences with up to 15 video participants. In November 2012, the company signed Stanford University as its first customer. The service was launched in January 2013 after the company raised a $6 million Series A round from Qualcomm Ventures, Yahoo! founder Jerry Yang, WebEx founder Subrah Iyar, and former Cisco SVP and General Counsel Dan Scheinman. Zoom launched version 1.0 of the program allowing the maximum number of participants per conference to be 25. By the end of its first month, Zoom had 400,000 users and by May 2013 it had 1 million users.

Growth

In July 2013, Zoom established partnerships with B2B collaboration software providers, such as Redbooth (then Teambox), and also created a program named Works with Zoom, which established partnerships with Logitech, Vaddio, and InFocus. In September 2013, the company raised $6.5 million in a Series B round from Horizon Ventures, and existing investors. At that time, it had 3 million daily meeting participants.

On February 4, 2015, the company received US$30 million in Series C funding from investors including Emergence Capital, Horizons Ventures (Li Ka-shing), Qualcomm Ventures, Jerry Yang, and Patrick Soon-Shiong. At that time, Zoom had 40 million users, with 65,000 organizations subscribed and a total of 1 billion meeting minutes since it was established. Over the course of 2015 and 2016, the company integrated its software with Slack, Salesforce, and Skype for Business. With version 2.5 in October 2015, Zoom increased the maximum number of participants allowed per conference to 50 and later to 1,000 for business customers. In November 2015, former president of RingCentral David Berman was named president of the company, and Peter Gassner, the founder and CEO of Veeva Systems, joined Zoom's board of directors.

In January 2017, the company raised US$100 million in Series D funding from Sequoia Capital at a US$1 billion valuation, making it a unicorn. In April 2017, Zoom launched a scalable telehealth product allowing doctors to host remote consultations with patients. In May, Zoom announced integration with Polycom's conferencing systems, enabling features such as multiple screen and device meetings, HD and wireless screen sharing, and calendar integration with Microsoft Outlook, Google Calendar, and iCal. From September 25–27, 2017, Zoom hosted Zoomtopia 2017, its first annual user conference. At this conference, Zoom announced a partnership with Meta Platforms to integrate Zoom with augmented reality, integration with Slack and Workplace by Facebook, and first steps towards an artificial intelligence (AI) speech recognition program.

IPO and onward

On April 18, 2019, the company became a public company via an initial public offering; since then, it has been listed on Nasdaq under the ticker symbol ZM. After pricing at US$36 per share, the share price increased over 72% on the first day of trading. Prior to the IPO, Dropbox invested $5 million in Zoom. The company first became profitable in 2019.

Due to the increase in remote work, distance education, and remote social relations during the COVID-19 pandemic, usage increased substantially and the Zoom mobile app was the 5th most downloaded mobile app in 2020, behind TikTok, WhatsApp, Facebook, and Instagram. The company offered its services free to K–12 schools in many countries. On April 30, the company joined the Nasdaq-100 stock index. The next month, Zoom acquired Keybase, a company specializing in end-to-end encryption, and in June, the company hired its first chief diversity officer, Damien Hooper-Campbell.

Zoom announced its first hardware as a service products in July 2020, bundling its videoconferencing software with third-party hardware by DTEN, Neat, Poly, and Yealink, and running on the ServiceNow platform. It began with Zoom Rooms and Zoom Phone offerings, with those services available to US customers, who can acquire hardware from Zoom for a fixed monthly cost. On July 15, 2020, the company announced Zoom for Home, a line of products for home use, designed for remote workers. The first product, Zoom for Home - DTEN ME, includes software by Zoom and hardware by DTEN. It consists of a 27-inch screen with three wide-angle cameras and eight microphones, with Zoom software preloaded on the device. It became available in August 2020.