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Vimeo raises $150M as IAC considers spinoff
IAC announced that it is considering a spinoff of Vimeo, a provider of tools for businesses to make professional-quality videos. As part of the plan, Vimeo raised $150 million in equity from Thrive Capital and GIC, in a financing that set a valuation of $2.75 billion for the video company.
The spinout discussion comes as Vimeo is seeing a boost in demand amid the Covid-19 pandemic. For the third quarter of 2020, Vimeo revenue increased 44 percent to $75.1 million and subscribers grew 21% to 1.46 million. Operating loss was $3.3 million.
New York-based IAC, which operates a stable of online brands, has a history of spinning out top performers. Perhaps its most prominent spinout is Match Group (which operates a number of dating services, including Tinder). The company completed its separation from IAC over the summer, with IAC’s ownership distributed to IAC shareholders.
Funding rounds
- Pony.ai secures $267 million: Pony.ai, a developer of autonomous driving technology that counts Toyota as a key backer, said on Friday it has raised $267 million in the initial phase of its fundraising round. The round reportedly values the startup at $5.3 billion, as it seeks to expand its presence in the United States and China.
- Neobank Starling raising big round: U.K.-based online bank Starling is reportedly seeking to raise a new £200 million ($262 million) round. Previously, the six-year-old company has raised around $477 million.
Illustration: Dom Guzmanv
