Instant group video chats on mobile developer Rounds has closed a $12 million Series B round of funding. The round was led by Sequoia Capital with participation from Samsung Ventures and previous investors including Verizon Ventures, Rhodium, DFJ’s Tim Draper and other private investors. The capital will be used to support the company’s continued growth and expansion, hire staff, and build out the platform further by bringing "fun and entertainment into the conversation."
Rounds was founded in 2008 by CEO Dany Fishel, COO Ilan Leibovich, and Dmitry Shestek. The latest financing brings to $22 million the amount raised by the company. Based in Tel Aviv, the company recently opened offices in New York.
Sequoia Capital Israel partner Shmil Levy said, “Rounds’ unique approach and increased engagement was different than any other video chat experience we’ve seen and is what triggered our belief in the company spearheading a new type of video chatting experience, one where instant conversations, fun content and pure entertainment lead the way. As a firm we’ve been active in the mobile messaging space, watching the evolution of communication very closely. We believe the next generation is about instant video chatting and interactivity and this is exactly what we see in Rounds.”
Samsung Ventures East Coast head Hyuk-Jeen Suh said, ”We invest in companies that are paving the way for their respective industries, and Rounds has quickly established itself as a pioneer in the video communications and entertainment space. This investment is evidence of our belief in the need to bring interactive and engaging video chat to hundreds of millions of consumers who use consumer electronics devices every single day.”
Rounds instant group video chat offers a fun, easy and instantaneous means for communicating and connecting with friends. Within Rounds’ mobile app, users enjoy interactive conversations with friends and family where they can play games, watch videos, share photos, and much more, while video chatting together.
To date, Rounds has 25 million users worldwide, most of whom have joined within recent months while the app has increased in popularity. The app has been featured over 100 times in recent months on the App Store and on Google Play. In 94% of video calls, Rounds users are engaged in interactive activities with one another - whether it’s playing games, using fun video effects, listening to music, taking snapshots or just scribbling on each other’s live feed.
Fishel said, “We’re taking the fundamental communication elements that connect people - sharing experiences and doing stuff together - to disrupt the video communication space. Whether it’s laughing about a video, reminiscing over photos, or singing along to a song, we’re bringing instantaneous group video chatting to everyday activities. It’s our “do things together” DNA that makes the difference."
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2015
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