Question
How would I reply to the post? For the Module 5 discussion, I am going to choose Zoom Video Communications, Inc. for the company receiving
How would I reply to the post?
For the Module 5 discussion, I am going to choose Zoom Video Communications, Inc. for the company receiving venture capital funding during its startup phase (Immad, 2023). Zoom is an online video chat service that grew tremendously when COVID-19 was spreading rapidly. People needed a place to go to meet with their co-workers, teachers, etc., and Zoom was the place everyone agreed upon. Zoom was founded in 2011 in San Jose, California, and the company went public eight years later in April of 2019. Instead of using Skype or Microsoft Teams, Zoom seemed to grow tremendously out of nowhere, and it offers nearly the same services as the already widely used and respected competitors, Skype, and Microsoft Teams (Beaven, 2023). Looking back at Zooms revenue over the past four years, in 2018, the company produces $7 million in profits and had just under 82,000 users (Iqbal, 2023). In 2022, the company produced $1060 million in revenue and grew to servicing 191,000 customers (Iqbal, 2023). Zoom, as well as its two major competitors, fall under the information and communication technology industry. I would consider this industry risky, as Zoom is a commodity and offers nearly the same product as competitors. Some risks in this industry include product development and production, cybersecurity measures, concern for hackers or breach, and expensive maintenance. In 2019, Zoom went public and began trading shares (Novet, 2019). The first day of trading was insane for the company, with an initial public offering that raised over $750 million. Zoom then decided to price 20.9 million shares at $36 each. This astronomical stock price resulted in the companys valuation being $9 billion. In 2019, the demand for shares in the Zoom IPO were exceptionally high (Novet, 2019). There is no information on why Zoom decided to go for VC funding over a bank loan. Something I enjoy about Zoom is the ease of use. You can call one person or many people. You can chat. You can screen share. It is also a free application for anyone to use, but if you opt for the free version, you are only allowed up to a 40-minute video session. If someone pays for the subscription to Zoom, users may stay on the call if they would like. Zoom also has an option for users to record a meeting, and I have personally benefitted from this feature in a few of my classes. It helps that I can go back to the lecture and get clarification on what I do not understand.
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