Pandemic tech 'unicorn' sells event business for just $50 million

Hopin CEO Johnny Bufarhat, 29, stepped down after the sale was announced. Photo: Hopin

Hopin, video The events company, which was the fastest growing start-up in Europe during the pandemic, has sold its digital conferencing division for just $50m (£39m).

Just two a year ago, the business was valued at $7.75 billion. Covid has forced companies to meet online, labeling it as a tech «unicorn», a $1 billion private startup.

Hopin raised $1 billion from venture capitalists after launching its app. lockdown has brought the global economy to a halt.

But now he's selling his digital events business after employees are back in the office and face-to-face conferences are back.

Khopin declined to name the amount of the deal. However, in a disclosure for US markets, videoconferencing company RingCentral, which acquired the division, said it paid only $15 million upfront, with an additional $35 million that may be available depending on how the business is performing.

< p>A Hopin rep did not respond to requests for comment on the price.

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As an example of how Covid caused major adjustments in startup valuations, Hopin was valued at $2 billion in November 2020. and then rose to $7.75 billion by August 2021.

The deals made Johnny Bufarhat, the 29-year-old CEO and founder of the company, a paper billionaire. The Hopin chief also sold more than £100m of shares in his business.

Despite the company spinning off its events division, Hopin said it has retained its video streaming and hosting division, adding that it is working on new «public» product. The company said it has a «strong balance sheet» and profitability.

In addition to the announcement of the sale, Mr. Bufarhat stepped down as chief executive.

Other companies that flourished during the pandemic have survived a sharp drop in value. Shares of Zoom, the US videoconferencing company, are down 88% from their peak in 2020.

Khoping told The Telegraph that the business units it sold to RingCentral now make up only a fraction of its business. «These two business divisions are minor compared to what's left of Hopin,» a spokesman said last week. and positive cash flow.”