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When Eric Yuan started talking with Sequoia, Zoom was already cash-flow positive—and not looking for investment. Eric thought the meetings were just friendly conversations. Then Carl and Pat surprised him.

Eric and Carl remember the day everything changed.

Carl Eschenbach
Sequoia

Everyone knew Zoom was doing well. You saw the energy and excitement in the market. I think every VC in this valley spoke with Eric, and he’d met with Sequoia many times.

Eric Yuan
Founder & CEO, Zoom

I really admired Sequoia. They’re one of those exceptional firms that’s been on top for years. So I kept the conversation open.

Carl Eschenbach

During one of those conversations, Pat asked him point blank, “Eric, if we were to offer you $100M and Carl on your board, would you take it?” It was a real offer, and we gave him that term sheet shortly thereafter. He clearly hadn’t expected that.

Eric Yuan

It was a very happy surprise. Later, I called up two friends who knew Carl, and both of them told me, “Eric, this is a no-brainer. You can’t find a better person to work with. Just do it.”

Carl Eschenbach

I think some of the board members were skeptical about taking funding when Zoom’s finances were so strong. I met with every one of them and discussed the value we could bring.

Eric Yuan

I remember the first time I stopped by Sequoia’s office and saw all those great companies on the wall. I thought, “Maybe someday Zoom will be up there.”

Carl Eschenbach

That initial investment was a launchpad. It wasn’t just about the $100 million, it was the marketing that came out of that.

Eric Yuan

We got lots of new customers. Our current customers and employees were happy, too. They felt like they’d made the right decision when they bet on Zoom.

Carl Eschenbach

We use Zoom ourselves, and a lot of our portfolio companies have switched. Now they’re spreading Zoom to everyone they meet with, as well.

Eric Yuan

Sequoia’s network has been highly valuable. I’ve learned a lot from meeting other entrepreneurs, and Sequoia has made great connections for our Sales team. They’ve also helped us find some key people like our enterprise sales leader and a board member with the audit committee experience we need.

Carl Eschenbach

I was in Eric’s shoes once, and I made so many mistakes! There was no roadmap. So now I try to share what I’ve learned—but at the same time, I respect that he’s been successful. I want to help him, not change him.

Eric Yuan

Having Carl and Pat on the board has been really helpful. We need people who understand how to steer a business from small startup to Fortune 500 company. They have that experience.

Zoom is delivering happiness to over 1000 team members and more than a million businesses worldwide.

Zoom
Zoom helps businesses and organizations bring their teams together with a unified platform for video/audio conferencing, collaboration, chat, and webinars across all devices.
Milestones
  • Partnered 2016
Team
  • Eric Yuan