Arik Hesseldahl

Recent Posts by Arik Hesseldahl

Vidyo Raises $17 Million in Round Led by Triangle Peak

vidyoVidyo, the videoconferencing startup that has been making the competitive enterprise videoconferencing business rather interesting over the last couple of years, has just closed another round of funding.

The company said today that it has closed a $17.1 million round of funding from its existing syndicate of investors, plus a new lead investor, Triangle Peak Partners. The round brings its total capital to $116 million raised since 2005.

It’s Vidyo’s fifth round of funding, the last being a $22 million series D led by QuestMark Partners. Networking company Juniper Networks later joined that with an undisclosed amount at the time, though a little back-of-the-envelope math suggests it was between $12 million and $14 million.

Previous investors include Menlo Ventures, Rho Ventures, Sevin Rosen Funds, Saints and Four Rivers Group.

In a statement announcing the funding, Vidyo said it saw billings increase by 68 percent year over year. This included a 77 percent surge in its health care business, and 67 percent growth in large enterprises. Since it’s private, it doesn’t disclose revenue.

Vidyo’s secret sauce is a technology called Adaptive Video Layering. Its hardware sits in a rack in the customer’s data center and constantly watches the underlying network conditions, and then adapts to meet them while video calls are under way. If there’s a lot of interference, the Vidyo system throttles up and down on the picture and sound it’s trying to deliver, based on the condition of the network. But it also adapts dynamically to the device that’s being used: It supports Apple’s iOS devices and also Google Android devices. It’s also the technology behind Google Hangout.


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There’s a lot of attention and PR around Marissa, but their product lineup just kind of blows.

— Om Malik on Bloomberg TV, talking about Yahoo, the September issue of Vogue Magazine, and our overdependence on Google