The Covid pandemic has had a significant impact on start-up valuations, and Hopin is a prime example. In just nine months, from November 2020 to August 2021, the company’s valuation skyrocketed from $2 billion to $7.75 billion. This tremendous growth made Johnny Boufarhat, the 29-year-old CEO and founder of Hopin, a paper billionaire. Boufarhat also cashed in over £100 million by selling shares in the business.
While Hopin made the decision to focus exclusively on its video streaming and hosting division, it clarified that it was working on a new “community” product. The company reassured investors by stating that it maintains a strong balance sheet, profitability, and positive cash flow.
In addition to announcing the sale, Boufarhat has stepped down as the CEO of Hopin.
Other companies that experienced a boom during the pandemic have not been as fortunate. Zoom, the US video conferencing company, has seen an 88% drop in its share value since reaching its peak in 2020.
When approached by The Telegraph, a Hopin spokesperson stated that the business units sold to RingCentral were now only a small part of the overall business. They reassured that despite the sale, Hopin remains financially stable, with a growing capital balance, profitability, and positive cash flow.
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