Video software platform Vimeo raises $300 million in funding

InterActive Corp (IAC)’s video software platform Vimeo has raised $300 million in equity from funds and accounts advised by T Rowe Price and Oberndorf Enterprises ahead of a planned spin-off into a separately traded company in Q2 2021.

The funds were raised at a post-money valuation of about $6 billion, more than doubling from the $2.75 billion valuation in November last year when Vimeo raised $150 million from Thrive Capital and Singapore’s sovereign wealth fund GIC.

Vimeo said the funding is happening through two tranches – an initial $200 million round at a pre-money valuation of $5.2 billion and a $100 million round at a pre-money valuation of $5.7 billion. The fresh financing will be used to accelerate investments in growth, innovation and talent, the company said in a statement.