Hopin confirms $400M in Series C at a valuation of $5.65B

Hopin confirms $400M in Series C at a valuation of $5.65B

Investment
February 9, 2022 by Editor's Desk
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Hopin, a virtual events platform and video-focused software service announced that it had closed a Series C funding at $400 million. The new capital raises the value of Hopin at $5.65 billion. The funding was led by Andreessen Horowitz (a16z) and General Catalyst (GC), and prior investor IVP also took part in the round. The
Hopin confirms 400M in Series C at a valuation of 5.65B

Hopin, a virtual events platform and video-focused software service announced that it had closed a Series C funding at $400 million. The new capital raises the value of Hopin at $5.65 billion.

The funding was led by Andreessen Horowitz (a16z) and General Catalyst (GC), and prior investor IVP also took part in the round.
The Hopin company has seen a similar level of success as many other startups in the industry. Hopin’s CEO’s revenue is now at $70 million ARR, a huge accomplishment for such a young startup. The company has reached $70 million ARR today. Founder Johnny Boufarhat is also the current CEO of Hopkins.

Hopin is pleased to welcome Sriram Krishnan to our board. Mr. Krishnan was among the top candidates that Hopin had hoped to hire before he took the opportunity at the VC firm. Hopin has scaled to $20 million in annual recurring revenue and grows by itself and through acquisitions. A good chunk of this growth was not organic. At the beginning of the year, Hopin announced they were buying StreamYard, which brought them $27million in ARR. For that, they spent $250 million on the acquisition.
The company has raised a total of $565 million since February of 2020.
Undisputable is investing heavily in product and engineering. CEO Boufarhat announced during an interview that he plans to spend a significant amount of money on products relative to revenue. It is under the assumption that Hopin has no intention of letting other companies carve into its core market while solidifying its virtual event service and adding other capabilities.

The acquisition brought Hopin, a company that was already in use by some of its users, and added a business line to its collection not wholly component to the event work for which Hopin is best-known. Boufarhat also said his company plans to make more acquisitions.
Hopin is great for videos, and we hope to see it expand to different products that match the mentality of Hopin and video., such as the other small startups it has done so in the past. It has all the cash and equity needed for such a move.

The company seems to be doing pretty well, with $70 million ARR and a valuation of 81x revenue. With $20 million in ARR and a $125 million investment round, they were worth 31x their revenues. The company’s valuation at the time was 106x their ARR, which was substantially higher than it would be today. Investors who participated in that financing round may have overpaid for the stock by buying at an ARR multiple of 30.4x since it’s now worth a lot more due to its recent growth and has a lower multiple.

If growth continues as expected, Hopin’s current ARR (or yearly revenue) multiple could appear more like the norm sometime soon.
Hopin seems to be ignoring the temptation to list with the SPAC. Boufarhat said he gets lots of offers from SPACs, which may be why several CEOs reject that opportunity. According to Hopin’s founder, outstanding companies can become publicly traded regardless of the market’s appearance so long as the company is operating IPO-ready next year. It might be indicative of a more traditional IPO for Hopin in 2022 or 20