Venture

The Briefing: IAC Eyes Vimeo Spinout, Pony.ai Raises $267M, And More

The Briefing

Here’s what you need to know today in startup and venture news, updated by the Crunchbase News staff throughout the day to keep you in the know.

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Vimeo raises $150M as IAC considers spinoff

IAC announced that it is considering a spinoff of  Vimeo, a provider of tools for businesses to make professional-quality videos. As part of the plan, Vimeo raised $150 million in equity from Thrive Capital and GIC, in a financing that set a valuation of $2.75 billion for the video company.

The spinoff discussion comes as Vimeo is seeing a boost in demand amid the COVID-19 pandemic. For the third quarter of 2020, Vimeo revenue increased 44 percent to $75.1 million and subscribers grew 21 percent to 1.46 million. Operating loss was $3.3 million.

New York-based IAC, which operates a stable of online brands, has a history of spinning out top performers. Perhaps its most prominent spinout is Match Group (which operates a number of dating services, including Tinder). The company completed its separation from IAC over the summer, with IAC’s ownership distributed to IAC shareholders.

Funding rounds

  • Pony.ai secures $267 million: Pony.ai, a developer of autonomous driving technology that counts Toyota as a key backer, said on Friday it has raised $267 million in the initial phase of its fundraising round. The round reportedly values the startup at $5.3 billion, as it seeks to expand its presence in the United States and China.
  • Neobank Starling raising big round: U.K.-based online bank Starling is reportedly seeking to raise a new £200 million ($262 million) round. Previously, the 6-year-old company has raised around $477 million.

Illustration: Dom Guzman

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