Sendbird has successfully raised $170.7 million over five funding rounds, achieving a valuation of over $1 billion. The platform is backed by notable investors such as ICONIQ, Softbank, Tiger Global Management, and Y Combinator.
Keep reading to explore the intricacies of Sendbird's fundraising journey and the investors backing this innovative customer communications platform.
What Is Sendbird?
Sendbird, founded by John S. Kim, Brandon Y. Jeon, Harry Kim, and Forest Lee, is headquartered in California. The company specializes in providing scalable communication solutions, including in-app chat, voice, video, and AI virtual assistants.
Since its inception, Sendbird has grown to employ between 201 and 500 people. The platform is trusted by over 4000 apps, facilitating communication for more than 300 million users monthly.
With additional offices in Singapore, London, and San Mateo, Sendbird continues to expand its global footprint, offering robust customer communication tools to businesses worldwide.
How Much Funding Has Sendbird Raised?
- Series A Funding Round
- Amount Raised: $16 million
- Date: December 19, 2017
- Lead Investors: Shasta Ventures and August Capital
- Motivation Behind the Round: To expand the product features, attract larger clients, and increase market awareness.
- Series B Funding Round
- Amount Raised: $52 million
- Date: February 19, 2019
- Lead Investors: Iconiq Capital
- Motivation Behind the Round: To expand market presence, hire marketing and sales personnel, and meet growing market demand.
- Series C Funding Round
- Amount Raised: $100 million
- Date: April 6, 2021
- Lead Investors: Steadfast Financial
- Valuation at Round: $950 million
- Motivation Behind the Round: To support growth and expansion, particularly in enhancing chat and video API services.
Sendbird has raised a total of $168 million with a current valuation of over $1 billion.
Key Investors
- ICONIQ Capital
- Details: ICONIQ Capital is a global multi-family office and merchant bank. It manages the wealth of some of the world's most influential families and entrepreneurs.
- Investment Focus Areas: Technology, enterprise software, consumer internet.
- Notable Investments: Snowflake, Datadog, Uber.
- SoftBank Vision Fund
- Details: SoftBank Vision Fund is one of the largest technology-focused investment funds in the world. It is known for making substantial investments in high-growth technology companies.
- Investment Focus Areas: Technology, telecommunications, energy.
- Notable Investments: Alibaba, WeWork, Arm Holdings.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that focuses on public and private companies in the global internet, software, consumer, and financial technology sectors. It has a strong track record of backing successful startups.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Spotify.
- Y Combinator
- Details: Y Combinator is a startup accelerator that provides seed funding, advice, and connections to early-stage startups. It has a rigorous selection process and offers a three-month program where startups receive mentorship and resources to grow their business.
- Investment Focus Areas: Early-stage startups across various sectors including technology, healthcare, consumer products.
- Notable Investments: Airbnb, Dropbox, Stripe.
- Shasta Ventures
- Details: Shasta Ventures is a venture capital firm that invests in early-stage technology companies. It focuses on companies that are building innovative products and services.
- Investment Focus Areas: Early-stage technology companies, enterprise software, consumer services, hardware.
- Notable Investments: Anaplan, Nest, Zuora.
What's Next for Sendbird?
Sendbird stands at the cusp of significant growth opportunities, driven by the increasing demand for integrated communication tools across various sectors. With a robust platform that supports chat, voice, and video APIs, the company is well-positioned to capitalize on the surge in digital communication needs, particularly in industries like gaming, healthcare, and customer service. The recent $100 million Series C funding round underscores investor confidence and provides the financial muscle to enhance their offerings and expand their market presence.
Future fundraising opportunities appear promising, with potential for Series D or strategic investments to further scale the business. However, Sendbird will need to navigate challenges such as intense competition from other API providers and the necessity to continuously innovate. Ensuring data privacy and security, while maintaining a scalable infrastructure, will be critical as they aim to support a growing user base and meet evolving market demands.
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