Wistia Takes A Y-Track With $17M To Buy Out Option - MobileAppDaily
Press Release

Wistia Takes A Y-Track With $17M To Buy Out Option

Initially, the company struggled badly.

Wistia Takes A Y-Track With $17M To Buy Out Option

When everyone is racing to fuel their start-up with more and more capital, the Cambridge-based Wistia Inc. is going another way around and exploring something that others would be wary of. The video software company is getting back the stock from its investors.

Wistia aims to maintain the profit with its steady growth. But soon the company started getting entangled with a lot of cash sucking processes and stood on the verge of bankruptcy. Thankfully, they bumped into a Silicon Valley firm Accel-KKR. 

The Savage and Wistia chief technology officer Brendan Schwartz stated in a lengthy blog post, “We turned down the offer to sell Wistia and instead took on $17.3M in debt. This allowed us to buy out our investors, gain full control of Wistia, and take the path less traveled in the tech industry.”

Much like any other start-up, the internet video hosting and analytics company was focused on building a successful venture and then thought of selling it for some handsome amount. But soon they realized their path and drove on another side of the business.

Initially, the company wasn’t able to generate much, but they realized that there is a need for people with credible experience. Then they turned towards angel investors, which resulted in $650,000 in the first round of funding. It helped the company to make progress but again they ran out of funds, and this time again angel funding came to their rescue with $775,000.

The funding really pushed the company to perform at their best by selling video management software to marketing teams at mid-sized businesses, and Wistia finally started saving money. Rest follows a long story.

“But really, the revenue growth and profitability give us the opportunity to do what we love: take creative risks.”

The struggle taught them to take the calculated risk, and that’s what they did. Still, the growth wasn’t as expected.

"We’re not a billion-dollar company,” Savage said. “What do you do if you’re in the middle?”

Savage was handed valuable advice from private equity investors and called “a leveraged buyout of our own company.

“There are so many companies that have raised so much money, but the founders and the employees get screwed,” Savage said. “In our world, I feel like nobody even knows that this is possible.”

The grapple for the right success taught the company to “never constrain success to measurable financial gain.”

MAD Team
Written By
MAD Team

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

Press Release

App Radar Launches a Free ASO Tool to Support Student and Start-Up App Developers

4 min read  

App Radar, the fast-growing Austria based app growth agency, recently launched a free version of their comprehensive ASO (app store optimization) tool.The App Radar team saw a lack of free app growth tools available to sprouting app developers and moved quickly to build one. Many app publishing

Press Release

Reading Eggs Survey Found American Parents Inclination Towards Digital Education Apps

4 min read  

New York, NY (September 23, 2019) -- Reading Eggs, an online reading program that helps children learn to read, has come up with a new survey conducted online by YouGov. The survey suggests that the majority of Americans agree with prioritizing reading as an activity during the early stages directly

Press Release

Mogul Launches Its Mobile App to Help You Set And Reach Goals

4 min read  

New York, NY - June 11, 2019 - Known for connecting women to top trending content, personalized to their interests, Mogul, a digital hub for women, has now become one of the largest ecosystems for over 30 million women across 196 countries. While empowering women to step out of their houses and inco

Press Release

ironSource Launches Revolutionary User Ad Revenue Measurement Solution

3 min read  

Leading mobile monetization and marketing company, ironSource, announced today the launch of User Ad Revenue (UAR), a unique product giving app developers the ability to measure ad revenue on the user level accurately, and link that data to the marketing channel which brought in that specific user.