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Mux raises $37M Series C as its API-essentially essentially based video streaming service scales

This morning, Mux, a startup that presents API-essentially essentially based video streaming tooling and analytics, presented that it has closed a $37 million Series C spherical of capital.

Andreessen Horowitz led the spherical, which included participation from Accel and Cobalt. Earlier than this funding spherical, Mux most only within the near previous raised a roughly $20 million spherical in mid-2019. In whole, the firm had raised a hair under $32 million earlier than its Series C, essentially essentially based on PitchBook files.

The Mux spherical lands amidst a different of trends that we’re tracking right here at TechCrunch, namely API-essentially essentially based startups, which would perchance be scorching as a team on the moment, and startups that are serving an accelerating digital transformation.

Let’s explore a piece of of Mux’s historical previous, and then dig into how the startup’s present tempo of revenue boost explains its recent infusion of capital.

From exits to analytics to APIs

TechCrunch spoke with Mux’s founder Jon Dahl in regards to the spherical, phenomenal about how the firm came to be. Dahl was a co-founding father of Zencoder help within the early 2010s, which sold to Brightcove. When Zencoder launched, TechCrunch talked about that it wanted “to be the Amazon Web Companies of video encoding.” It damage up selling for $30 million, a resolve that stood a piece of taller in 2012, when the transaction was presented.

Dahl caught around Brightcove for a few years while angel investing. Then in slow 2015 he founded Mux. The recent startup first constructed an analytics software program called Mux Recordsdata. Dahl talked about the analytics product was wanted because extra used tooling like Google Analytics don’t work smartly with online video.

Mux Recordsdata is a SaaS product. Nonetheless what made Mux even extra exciting is its on-seek files from infra play, namely Mux Video.

Mux Video is delivered by job of an API, supporting each and every are residing and on-seek files from video for other companies. The startup likes to argue that it’s doing for video what Stripe has finished for funds, namely exhaust a bundle of complexity and headache, struggle it into shape, then offer it by job of a developer-edifying hook.

Turning in video, we’ve viewed by job of the bootstrapped boost of Cloudinary and recent Day to spherical, is rising work in 2020.

That truth shows up in Mux’s numbers, which would perchance be a shrimp bonkers. The firm’s aggregate revenue numbers are rising at a tempo that Dahl described as 4x, while Mux Video’s revenues are rising at a tempo of 8x, he talked about. Dahl shared a few other metrics — startups: while you like to have folk to care about your funding spherical, follow this case — including that Mux Video’s LTV/CAC ratio is somewhere around 5x-6x, and that its gain retention is around 160%.

The restful performance files that Mux shared mark why a16z wanted to place its capital into the firm.

Nonetheless to higher realize that the total identical, I caught up with Kristina Shen, a fashioned accomplice on the mission agency. Shen stressed out that Mux was heading within the staunch direction earlier than the pandemic, nonetheless that COVID has accelerated the importance of video in how folk work along with one one more — an accelerating secular shift for Mux to surf, in other words.

COVID has bolstered Mux, with a delivery referring to its recent investment, noting that its “social media customers [have seen] an develop bigger of 118% in video streaming since mid-February while health and health streaming surged by 162%, e-studying grew by 230% and spiritual streams jumped with regards to 3 orders of magnitude.”

Shen talked about sooner or later of our call that Mux is doubtless the most quickest-rising enterprise SaaS companies that her agency has viewed.

In the conclude, when asked about Mux’s irascible margins, Shen talked about the firm would finally obtain out about similarly to other companies within the infra jam, like Twilio and Stripe. This matches what Dahl suggested this text, though the founder included a stress-free wrinkle. Be aware Mux Recordsdata, the analytics product? Its margins extra carefully resembles SaaS economics, while Mux Video is extra similar to other API, infra performs. So Mux has a piece of of SaaS and a piece of of infra in it, which ought to serene give it a orderly exciting blended irascible margin profile.

Enjoyable. The next time we consult with the agency we’ll be phenomenal to obtain out about how far into the double-digit hundreds and hundreds it could perchance most likely well well stretch its chase rate.

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