Loom, Zoom, boom: How Rippling raised $250 million with a demo video and a memo

Video app Loom has become the founder’s tool of choice for pitching venture capitalists.

Rippling CEO Parker Conrad

Rippling CEO Parker Conrad recorded a product demo on Loom and sent it to investors as a fundraising shortcut.

Photo: Rippling

Parker Conrad has come to deeply loathe PowerPoint slides. He’s raised money for three different startups, and sending investors slides of a pitch deck feels like sending them only half a presentation, he said.

“It’s like sending someone a song and some of the tracks of music are missing,” Conrad, the co-founder and CEO of HR startup Rippling, told Protocol. “Any slide that you put together is meant to be accompanied by your voice track. And so if you’re sending slides without that, it’s a terrible way to convey information.”

That’s why more entrepreneurs like Conrad are turning to tools like Loom to record their pitches and demos instead. As part of raising $250 million at a $6.5 billion valuation in Rippling’s last funding round, Conrad sent VCs both a 13-page memo and a 39-minute product walkthrough that Conrad recorded on Loom.

It’s in part a time-saving maneuver and a way to get in front of more investors during a funding round. During the pandemic, VCs have embraced Loom videos as a way to get an overview of a startup or its product before even committing to a “get-to-know-you” meeting over Zoom. It even has its own catchphrase — “Loom, Zoom, Room” — thanks to angel investor Jason Calacanis.


But it also has the added bonus of being a way to control how your startup’s story is told, said Conrad.

Traditionally, pitching a venture firm is a game of telephone. An entrepreneur meets with a venture firm partner, who then in turn has to deliver their version of the pitch to their partners to try to get their buy-in or interest in a deal. Sending the loom and memo with Conrad’s own explanation of his product meant that the partners could get Conrad’s vision directly from him.

“Even in a world where those critical meetings are taking place in person, I think starting with that initial pitch being over video allows you to hit many more, many more investors, but also to get in front of many more individuals at a firm,” he said.

It also allowed him to cast a wider net for investors, breaking the geographic hold Sand Hill Road has had on fundraising simply because it was easier to hit a bunch of firms all located in one spot in person.

By shortcutting the process, Conrad could save himself the time of repeating the same 40-minute demo over and over again.


It took a lot more upfront work to write the memo and record the Loom demo, but after hitting send, Conrad said he wasn’t as involved in the fundraising process as he had to be in the past. Often the follow-up questions from investors were specifics better handled by his CFO or head of sales.

“I remember feeling actually in the process that I didn’t have that much to do,” Conrad said. “There were one or two calls that I joined, but a lot of the work was very front-loaded before we even talked to investors.”

Investors may like Loom because it saves them time in reviewing an investment, but it’s been a huge bonus for founders to avoid the tax fundraising puts on their schedule.

“The limiting factor about fundraising was always my time,” Conrad said.

Policy

How 'Zuck Bucks' saved the 2020 election — and fueled the Big Lie

The true story of how Mark Zuckerberg and Priscilla Chan’s $419 million donation became the 2020 election’s most enduring conspiracy theory.

Mark Zuckerberg is smack in the center of one of the 2020 election’s multitudinous conspiracies.

Illustration: Mike McQuade; Photos: Getty Images

If Mark Zuckerberg could have imagined the worst possible outcome of his decision to insert himself into the 2020 election, it might have looked something like the scene that unfolded inside Mar-a-Lago on a steamy evening in early April.

There in a gilded ballroom-turned-theater, MAGA world icons including Kellyanne Conway, Corey Lewandowski, Hope Hicks and former president Donald Trump himself were gathered for the premiere of “Rigged: The Zuckerberg Funded Plot to Defeat Donald Trump.”

Keep Reading Show less
Issie Lapowsky

Issie Lapowsky ( @issielapowsky) is Protocol's chief correspondent, covering the intersection of technology, politics, and national affairs. She also oversees Protocol's fellowship program. Previously, she was a senior writer at Wired, where she covered the 2016 election and the Facebook beat in its aftermath. Prior to that, Issie worked as a staff writer for Inc. magazine, writing about small business and entrepreneurship. She has also worked as an on-air contributor for CBS News and taught a graduate-level course at New York University's Center for Publishing on how tech giants have affected publishing.

Sponsored Content

Why the digital transformation of industries is creating a more sustainable future

Qualcomm’s chief sustainability officer Angela Baker on how companies can view going “digital” as a way not only toward growth, as laid out in a recent report, but also toward establishing and meeting environmental, social and governance goals.

Three letters dominate business practice at present: ESG, or environmental, social and governance goals. The number of mentions of the environment in financial earnings has doubled in the last five years, according to GlobalData: 600,000 companies mentioned the term in their annual or quarterly results last year.

But meeting those ESG goals can be a challenge — one that businesses can’t and shouldn’t take lightly. Ahead of an exclusive fireside chat at Davos, Angela Baker, chief sustainability officer at Qualcomm, sat down with Protocol to speak about how best to achieve those targets and how Qualcomm thinks about its own sustainability strategy, net zero commitment, other ESG targets and more.

Keep Reading Show less
Chris Stokel-Walker

Chris Stokel-Walker is a freelance technology and culture journalist and author of "YouTubers: How YouTube Shook Up TV and Created a New Generation of Stars." His work has been published in The New York Times, The Guardian and Wired.

Fintech

From frenzy to fear: Trading apps grapple with anxious investors

After riding the stock-trading wave last year, trading apps like Robinhood have disenchanted customers and jittery investors.

Retail stock trading is still an attractive business, as shown by the news that crypto exchange FTX is dipping its toes in the market by letting some U.S. customers trade stocks.

Photo: Lam Yik/Bloomberg via Getty Images

For a brief moment, last year’s GameStop craze made buying and selling stocks cool, even exciting, for a new generation of young investors. Now, that frenzy has turned to fear.

Robinhood CEO Vlad Tenev pointed to “a challenging macro environment” marked by rising prices and interest rates and a slumping market in a call with analysts explaining his company’s lackluster results. The downturn, he said, was something “most of our customers have never experienced in their lifetimes.”

Keep Reading Show less
Benjamin Pimentel

Benjamin Pimentel ( @benpimentel) covers crypto and fintech from San Francisco. He has reported on many of the biggest tech stories over the past 20 years for the San Francisco Chronicle, Dow Jones MarketWatch and Business Insider, from the dot-com crash, the rise of cloud computing, social networking and AI to the impact of the Great Recession and the COVID crisis on Silicon Valley and beyond. He can be reached at bpimentel@protocol.com or via Google Voice at (925) 307-9342.

Enterprise

Broadcom is reportedly in talks to acquire VMware

It hasn't been long since it left the ownership of Dell Technologies.

Photo: Yichuan Cao/NurPhoto via Getty Images

Broadcom is said to be in discussions with VMware to buy the cloud computing company for as much as $50 billion.

Keep Reading Show less
Jamie Condliffe

Jamie Condliffe ( @jme_c) is the executive editor at Protocol, based in London. Prior to joining Protocol in 2019, he worked on the business desk at The New York Times, where he edited the DealBook newsletter and wrote Bits, the weekly tech newsletter. He has previously worked at MIT Technology Review, Gizmodo, and New Scientist, and has held lectureships at the University of Oxford and Imperial College London. He also holds a doctorate in engineering from the University of Oxford.

Podcasts

Should startups be scared?

Stock market turmoil is making VCs skittish. Could now be the best time to start a company?

Dark times could be ahead for startups.

Photo by Startaê Team on Unsplash

This week, we break down why Elon Musk is tweeting about the S&P 500's ESG rankings — and why he might be right to be mad. Then we discuss how tech companies are failing to prevent mass shootings, and why the new Texas social media law might make it more difficult for platforms to be proactive.

Then Protocol's Biz Carson, author of the weekly VC newsletter Pipeline, joins us to explain the state of venture capital amidst plunging stocks and declining revenues. Should founders start panicking? The answer might surprise you.

Keep Reading Show less
Caitlin McGarry

Caitlin McGarry is the news editor at Protocol.

Latest Stories
Bulletins