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· Posted on
February 21, 2024

Hopin goes from $7.6-billion-virtual-stardom to $15-million-reality-check after recent sale

Hopin has sold its virtual events platform for just $15 million to RingCentral.

What's the key learning?

  • Along with selling its core business, Hopin's founder has also stepped down as CEO and the company's valuation has dropped down to about 5% of its peak valuation.
  • The pandemic highlighted the importance for investors to differentiate between short-term trends and businesses with long-term value.
  • Investors saw the pandemic as an opportunity and pumped cash into businesses that were focused on remote work solutions.

👉 Background: Hopin is a virtual events startup that shot to stardom during the pandemic. They were valued at $7.6 billion USD back in 2021. In simple words, they were peaking.

👉 What happened: Now, Hopin has sold its virtual events platform, (AKA the core of their business) for just $15 million to RingCentral.

👉 What else: Since then, Hopin's founder has also stepped down as CEO and the company's valuation has dropped down to about 5% of its peak valuation. Yikes.

What's the key learning?

💡Some companies only sparkle when there's a storm. The pandemic highlighted the importance for investors to differentiate between short-term trends and businesses with long-term value.

💡When the pandemic hit, there was a sudden need for virtual event platforms globally. Investors saw this as an opportunity and pumped cash into businesses that were focused on remote work solutions.

💡When the pandemic era ended, the demand for virtual event platforms or video conferencing tools plummeted. And, Hopin isn't the only startup to suffer from this:

  • One of their smaller competitors, Run The World, was also sold off when demand for virtual events dropped.
  • American company Verizon canned their video-conferencing app, BlueJeans.

‍

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