It’s been an exciting start to 2016.
On December 28, 2015, we completed our spinout from Logitech and are now a completely independent legal and operating business, distinct from our previous corporate parent. This is the culmination of two years of hard work reimagining and reinventing our business and nearly a year of working through the transaction.
This was solely our choice. Logitech was a very supportive owner as we went through a total makeover of our product offering and go-to-market model. However, as we approached the completion of that journey, it became obvious to all that growing and investing in an early stage B-B SaaS business inside a publicly traded consumer, retail hardware company was not a good long-term fit. We could have stayed within Logitech and made it work, but we both felt that we would never fully realize the incredible opportunity in front of us.
My Lifesize team and I approached a number of early- and mid-stage growth equity venture capital firms in Silicon Valley with our reinvention and growth story. We ultimately chose to partner with three top-tier firms we knew very well: Redpoint Ventures, Sutter Hill Ventures and Meritech Capital. These firms are impressed with the pace of our growth, the strength of the product offering and our plans for addressing the market opportunity.
Two of them were investors at the birth of Lifesize in 2003. Jeff Brody at Redpoint invested in my first video company, ViaVideo, in 1996, which was later acquired by Polycom. They know our team, they know our market and they see great promise in the explosively growing Cloud service delivery model for video communications. Additionally, because of their experience in our space, they understand the unique, compelling and defensible value proposition we offer by deeply integrating our Cloud service with our award-winning camera systems and HD phones.
Logitech, our new investors and Lifesize worked closely together throughout the summer and fall to craft a deal that worked for all parties. Lifesize receives $17.5 million of equity capital for growth; Logitech retains a meaningful, though nonoperational, ownership stake in our future success; and our new VC investors hold significant ownership and board seats in a high growth leader in a $7 billion market. It’s a win-win-win.
We are particularly enthusiastic about the deep operational and governance expertise that Meritech, Sutter Hill and Redpoint bring to the table. They’ve been a part of some of the best stories in SaaS, including leaders like Box, Zendesk and Twilio. We are very excited about the opportunity for them to help us accelerate our growth not only through their capital injection but also through their knowledge and network of experts.
We are grateful to Logitech—particularly Chairman Guerrino De Luca, who supported our turnaround—and to our new investors who have entrusted us with their precious capital.
Finally and most importantly, I am particularly grateful to all the Lifesizers, channel partners and customers around the world who have supported us throughout this journey.
And, we are just getting started.