ZenCastr Raises $4.6M for New Video Beta Launch

Zencastr Evolves with Video and Seed Funding

Established in late 2014, Zencastr, headquartered in Salt Lake City, has become a vital tool for numerous podcasters. The shift to online podcasting, accelerated by the pandemic, significantly boosted the platform’s relevance.

A Significant User Base

While not widely recognized by the general public, Zencastr reports being utilized by approximately 6% of all podcasts globally. This figure is based on an estimated 800,000 to 1.2 million active podcast shows worldwide.

Beyond Basic Video Chat

Many podcasters have experimented with Zencastr, finding it offers a more focused solution compared to general video conferencing applications like Zoom and Skype. While some have adapted those programs, Zencastr provides dedicated features, including high-quality audio recordings saved both locally and to the cloud.

Introducing Video Capabilities

Since last June, Zencastr has been evaluating a video feature. This addition addresses a long-standing gap in the platform’s functionality. Many users, including this reporter, transitioned to Zoom for online shows during the pandemic.

Video Beta Now Available to All

Previously accessible only through a closed beta program, the video feature is now available to all Zencastr users. It delivers HD video recording alongside the platform’s established high-fidelity audio quality.

Customization and Editing Options

Early testing reveals the video feature to be more customizable, though potentially less intuitive than services like Zoom. Users receive HD video files suitable for editing or utilizing the split-screen view. A live chat, footnotes, and a soundboard are also included, suggesting real-time show editing capabilities.

$4.6 Million Seed Round

Concurrent with the video feature’s wider release, Zencastr has secured $4.6 million in seed funding – its first substantial investment since its inception.

Bootstrapped Growth and Future Vision

Founder and CEO Josh Nielsen explains to TechCrunch that Zencastr has operated on a “bootstrapped, self-funded” model. He emphasizes the importance of supporting creators, stating they are the company’s primary focus.

Pandemic-Driven Growth

The increasing popularity of podcasting has directly correlated with Zencastr’s growth. The company reports a 147% increase in podcasting hours since the start of the COVID-19 pandemic.

Investment Details

The seed round is spearheaded by Utah-based Kickstart, with participation from Brian Dilley and Farhad Mohit, former executives of Flipagram, and Jeremy Andrus, the previous CEO of Skullcandy.

Profitability and Acceleration

Nielsen adds that despite its modest beginnings, Zencastr has consistently been profitable and growing. The new funding will be used to accelerate this growth and enhance the platform’s reliability and stability.

Addressing Stability Concerns

Some Zencastr users have previously reported stability issues. Recent testing revealed minor concerns, such as audio delays not present in other services like Skype and Zoom. While not critical, these issues can disrupt the flow of an interview. The video presentation, still in beta, also lacks some polish.

Funding Allocation: Improvements and Hiring

The funding will be directed towards resolving these issues and expanding the team through new hires.

Distributed Team Philosophy

Co-founder and CPO Adrian Lopez shares with TechCrunch that Zencastr has always embraced a fully distributed team, with members in 11 countries. This approach allows access to top talent regardless of location.

Introducing the "Digital Nomad" Podcast

Zencastr is also launching “Digital Nomad,” a podcast series detailing the company’s own journey. However, the company clarifies this is not a move towards becoming a major content producer.

Connecting People Through Podcasting

Lopez emphasizes Zencastr’s belief in podcasting as a medium for connection. The distributed team structure embodies this philosophy, allowing individuals worldwide to connect through this medium.

Competition and Future Outlook

Zencastr faces competition from platforms like SquadCast and Riverside.fm. A potential decrease in online recording as in-person interactions resume could also impact growth.

Long-Term Podcast Growth

Lopez anticipates some retraction as people return to in-person work, but believes the overall interest in podcasting will continue to expand, both before and after the pandemic.