Why did Point Nine Capital invested $12 million in Whereby?

17 March 2021 Insights
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This week Whereby announced raising $12 million for a SAAS op selling a video collaboration tool for freelancers and small companies.

If you don't know what Whereby is - in 2013 two guys bought out from Telenor, the Norwegian telecom company, a software tool called Appear.in and used for video collaboration.

The two are Øyvind Reed and Jørn Mikalsen - the latter previously involved in Tandberg, acquired by Cisco for NOK 19bn ($2.5bn) in 2010.

The deal was initially made for a share of 70% in the company controlling it, called Videonor - they worked on Appear.in within Telenor's digital incubator until 2017 when they bought it entirely.

In 2020 they renamed it Whereby and this week they announced closing a $12 million series A investment round, backed by Point Nine Capital and some 20 high profile angel investors. Point Nine initially invested in the company at the beginning of 2020, in a deal that was announced just now, with the series A.

I don't remember seeing recently too many VCs from Europe so enthusiastic publicly after closing a series A round. Add to the unusual the fact that the said VC is German. :-)

There's a few reasons for that:

First - the relief/excitement for being right 15 months ago, by backing a video SAAS outsider before the pandemic. 2020 was the year of crossing the chasm for Whereby - that writing was on the wall, the pandemic just transformed an upward demand trend of using video conference tools as a WFH mean into a hockey stick.

Second - the execution was there. I bet that it wasn't an easy, straighforward year for the Norwegians, but the end result is nothing short of remarkable - 4.5x yoy in a market that is expected to grow in the double digits CAGR in the next 5-10 years. A market dominated by heavy enterprise providers like Cisco, Zoom, Microsoft and Google.

Third - the best is yet to come. Not only the PMF is there as reflected by the 2020 results, but Whereby truly has the potential to become a $100 million a year company in less than 3 years. The dream of every VC, and usually the definition of a great SAAS startup investment.

We created a report digging deeper into the fundamentals and analysing the specific numbers about Whereby's growth potential.

Our conclusion: Whereby is a serious unicorn candidate and has the opportunity to be one of the European special startups.


Access the report Why did Point Nine Capital invested $12 million in Whereby?

You will need to log in in order to access this report. The article is part of the Cheat Sheet Library and provided complimentary with the data access to all N9 customers.

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The report includes:

  • Whereby's pricing analysis and arpa (average revenue per account) decomposition
  • the company's customer segmentation and go to market.
  • financial projections for the next 5 years
  • risks and future evolution

Access the report Why did Point Nine Capital invested $12 million in Whereby?


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