Hopin Raises $400M at $5.65B Valuation

Hopin Secures $400 Million in Series C Funding

This morning, Hopin, a leading platform for virtual events and a provider of video-focused software solutions, announced the successful completion of a $400 million Series C funding round. This new investment brings the company’s valuation to $5.65 billion.

These figures align with previous reports from TechCrunch, which indicated the company was aiming to raise $400 million at a valuation falling between $5 billion and $6 billion.

Funding Round Details

The funding round was co-led by Andreessen Horowitz (a16z) and General Catalyst (GC), as previously anticipated by TechCrunch. Existing investor IVP also participated in this latest financing.

For Hopin, this represents another instance of swift funding acquisition within a series of similar transactions. The company has experienced substantial revenue expansion in recent quarters.

Revenue Growth and Acquisition

Currently, Hopin’s Annual Recurring Revenue (ARR) has reached $70 million, as stated by CEO and founder Johnny Boufarhat in an interview with TechCrunch.

Sriram Krishnan, a recent addition to a16z, will be joining Hopin’s board of directors as a result of this transaction. Boufarhat revealed that Hopin had previously expressed interest in hiring Krishnan before his employment with the venture capital firm.

Hopin has rapidly grown beyond its earlier $20 million ARR milestone, which was announced in the fourth quarter of 2020. However, a portion of this growth is attributable to acquisitions.

The recent purchase of StreamYard contributed $27 million in ARR to the combined entity. Hopin invested $250 million in this acquisition, which was finalized in January of this year.

Investment Strategy and Future Plans

Since February 2020, the company has raised a total of $565 million, according to an official statement.

Boufarhat emphasized that Hopin plans to significantly invest in its product development and engineering teams. He underscored his commitment to maintaining a high level of product spending as a percentage of revenue.

TechCrunch interprets this as a clear indication that Hopin intends to defend its market position and enhance its virtual event service with additional functionalities.

The StreamYard acquisition offers insight into Hopin’s potential future direction. This acquisition not only provided access to a company already utilized by some of Hopin’s users, but also expanded its business offerings beyond its core event-focused services.

Boufarhat indicated that Hopin is receptive to exploring further acquisition opportunities.

It is plausible that Hopin will broaden its scope to include products that align with its video-centric approach, given its substantial capital reserves and equity value.

Valuation and Market Position

At $70 million ARR, Hopin’s valuation is approximately 81 times its current annual recurring revenue. In November 2020, during a $125 million funding round, the company had an ARR of $20 million and a valuation of $2.125 billion.

At that time, the company was valued at slightly over 106 times its ARR. Considering the company’s recent growth, investors in that earlier round now see a significantly lower ARR multiple of 30.4x.

If Hopin sustains its rapid growth trajectory, its current ARR multiple could align more closely with industry norms in the coming quarters.

IPO Plans

Hopin does not currently favor pursuing a Special Purpose Acquisition Company (SPAC) merger. Boufarhat shared with TechCrunch that he regularly receives inquiries from SPACs, a trend observed among CEOs of late-stage technology companies.

However, Hopin’s founder believes that strong companies can successfully go public regardless of market conditions, and he anticipates his company being prepared for an Initial Public Offering (IPO) next year.

A traditional IPO for Hopin appears likely in 2022 or 2023.

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