Zoom Raises $100 million

Read the article HERE

While many people are tripping over themselves heaping congratulations on the folks at Zoom it makes me wonder instead.

I still question the economic viability of software codecs. Sure, in my opinion Zoom is the best soft codec I use, but many people are just fine with free services like Skype even though the video and audio experience can be poor. Zoom is clearly a class or five above the free services that are available, but taking in $100 million? A few questions come to mind.

What is the cost of customer acquisition? I can't imagine the sales cycle being too long, especially compared to traditional hardware.

How sustainable is $14.99-19.99 per user?

If everything was going well and money was flowing, why take on such a huge round? That's the heart of the matter. Here is the best software video conferencing product available (in my opinion of course) and they're giving away more equity.

I hope it works out and they continue to succeed.

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