By Emily Bary
As Vimeo prepares for life as a standalone public company, the maker of video software has picked up a new round of equity funding that values the company at upwards of $5 billion.
Vimeo announced late Monday that it raised $300 million in equity in two tranches, the latter of which gave the company a $5.7 billion pre-money valuation. Vimeo, a unit of IAC/InteractiveCorp. /zigman2/quotes/205118493/composite IAC +3.36% , is due to spin out and become its own public company during the second quarter of 2021 .
The company initially raised $200 million at a pre-money valuation of $5.2 billion before an additional $100 million investment valued it to $5.7 billion, according to a statement. T. Rowe Price Group, Inc. and Oberndorf Enterprises invested in Vimeo.
These latest investments follow a $150 million equity raise that the company announced in November 2020. “The capital will provide Vimeo with additional cash to accelerate its investments in growth, innovation and talent,” the company said.
Vimeo saw 57% revenue growth in December, which was its highest monthly growth rate on a year-over-year basis during 2020, per the release.
The company has seen increased traction during the pandemic as companies look for more video-based solutions in a remote world. Vimeo makes software tools that allow companies to make, edit and store videos, among other functions. Vimeo also offers event streaming for things like corporate events and company town-hall meetings.
“We intend to move swiftly to bring our professional-quality tools to millions more users,” Vimeo Chief Executive Anjali Sud said in the statement. Vimeo said it has more than 200 million users.
IAC shares have gained 57% over the past three months as the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.95% has risen 11%.