Online video platform Affordable, a startup that makes it easy to create polished, professional videos using templates and a library of images and animations, has raised $ 7 million in Series A funding led by Cloud Apps Capital Partners. The service today competes with products from Vimeo, Canva, Adobe, and others, but focuses on creating video assets that are more durable than temporary social videos.
These kinds of videos are more in demand than ever, because the pandemic has has spurred increased use of video communications – particularly among small businesses, which has also helped Biteable grow, according to the company.
“[The pandemic] accelerated the switch to video which was already happening, ”notes Biteable CEO Brent Chudoba, who joined the company late last year. “It obviously helped things like Zoom and products like Loom. We also saw a benefit. I think in fact we’ll see an even bigger benefit over time as companies are now used to working and sharing messages remotely, and having to be more creative in the way they distribute. information, ”he said.
The startup itself was co-founded in 2015 in Hobart, Australia by the CTO Tommy fotak, Simon westlake, and James mac gregor. Fotak’s background was in software development, while Westlake had experience in animation and studio production. MacGregor, who has a background in software, products, and marketing and previously worked at BigCommerce, is Biteable’s product manager.
The team was initially working on independent projects for people in need of advertisements and explainer videos, which led them to seize the opportunity in the video creation market. They believed there was a demand for a video maker product that simplified many decisions to be made when creating a video. That is, they wanted to do for video creation what Squarespace, Wix, and others did for website creation.
Chudoba joined the company more recently because Biteable wanted to hire a CEO with more experience growing freemium software productivity businesses. Prior to Biteable, Chudoba worked in private equity, was an early employee of SurveyMonkey (CRO) and also spent time at PicMonkey (COO), Thrive Global (COO and CFO) and Calendly (head of operations commercial).
Although Chudoba admits that Biteable is not without competition, he sees it as a positive thing. This means that there are opportunities in the market and it gives Biteable a chance to differentiate itself from the rest.
In this regard, Biteable’s customers tell him that the product strikes a good balance between the time and skills they have and the quality of the results.
“They can produce results that they’re very proud of that go beyond what they thought they could do – not necessarily with little effort – but without having the training, skills and experience in design,” says Chudoba.
Above: An explanatory video of Biteable built with Biteable.
Customers also appreciate the extensive content library, which includes a combination of stock photography, stock video footage, and hundreds of animations and scenes. The bitter license content of Unsplash and Storyblocks, while its animation library and models are built in-house by its own professional design team. This allows the company to publish hundreds of scenes per month, in order to keep the content of the library up to date and up to date.
Unlike some of the other products on the market, Biteable’s sweet spot isn’t on “quick” social videos, like Instagram Stories, for example. Instead, it focuses on the assets that businesses use and reuse, like how-to videos for a business, online marketing and ads, videos that appear on product pages, and more. His videos also tend to be between 30 seconds and three and a half minutes long.
Already, Biteable has found individuals from companies like Amazon, Microsoft, Google, Disney, Salesforce, BBC, Shopify, and Samsung who have used its service, although it has no formal contracts with these large companies.
Above: A Biteable recruiting video template.
Today, the startup generates income through a freemium economic model that includes several subscription plans.
A free plan for individual users provides access to the suite of video creation tools, including the 1.8 million images, clips and animations in the Biteable library. However, the free videos are watermarked with the Biteable trademark. A $ 19 per month plan for single users removes the watermark and lets you add your own and offers 1080p HD resolution and other features like commercial use rights. Professionals pay $ 49 per month for editing and shared projects and use by an unlimited number of team members and more. Custom pricing plans are also available.
Together, Biteable’s free and paid users total over six million. They create around 100,000 unique videos per month, and that number has roughly doubled during 2020.
The new $ 7 million funding round announced today was led by new investor Cloud Apps Capital Partners. Existing investor Tank Stream Ventures also returned for the round and was joined by new and existing angel investors. In total, Biteable has raised over $ 9 million to date.
With the additional funds, Biteable aims to hire and continue to develop the product.
Another change attributed to the pandemic is that people have warmed to remote work. Biteable was already a first remote operation with a team of 46 people geographically distributed in Australia, the United States, Canada and Western Europe. Now Biteable no longer has to convince people that remote working is the future – and that also helps recruit talent.
Chudoba believes Biteable can grow into a bigger business over time.
“Video is a platform concept, so I think you can build a really large, stand-alone business,” says Chudoba. “We are a freemium model, so it’s a low cost of customer acquisition. It’s a great value service and it can be very sticky when you involve teams, ”he notes.
“The power of online video has been incredible, and the events of 2020 accelerated adoption trends that would otherwise have taken five or more years to evolve,” notes Matt Holleran, general partner at Cloud Apps Capital Partners, in a statement on the investment of his company. “As a company, we’re looking for great companies in high growth industries with great teams that we can help take to the next level. In Biteable, we see these three elements and we are incredibly happy to partner with Brent and the team at Biteable for this next chapter of growth, ”he said.