About this video

• Video Title: Loom's Road to $975 Million Exit by Atlassian - Shahed Khan
• Channel: EO
• Speakers: Shahed Khan
• Duration: 18:29

Overview

This video features Shahed Khan, co-founder of Loom, detailing the company's journey from its inception through multiple pivots to its eventual acquisition by Atlassian. Khan shares insights into the challenges of entrepreneurship, the importance of adapting to market feedback, and the evolution of Loom as a communication tool.

Key takeaways

• Early Pivots: Loom began as a result of two previous failed attempts, highlighting the iterative nature of startup development.
• User Feedback is Crucial: Initial product testing for "OpenTest" yielded minimal revenue, leading to a pivot based on feedback from companies like Facebook and Twitter.
• Don't Be Married to the Solution: Khan emphasizes that entrepreneurs should focus on solving the problem, not getting overly attached to a specific solution, as illustrated by Loom's transformation from a user testing platform to a communication tool.
• Product-Led Growth: Loom's success was significantly driven by its product being so effective that users naturally shared it within their organizations, leading to organic growth.
• Adaptation During COVID-19: The pandemic accelerated Loom's adoption as remote work became essential, prompting the company to make its platform free for educational sectors and temporarily delay monetization.
• Importance of Co-founders: Strong co-founder relationships were vital for navigating the difficulties and "speed bumps" of the startup journey, providing mutual support.
• Reinventing the Business: Loom had to reinvent itself multiple times before finding its successful product-market fit, underscoring that persistence and adaptation are key.

Shahed Khan explains that when they were developing their initial product, "OpenTest," which was a user testing platform, they received feedback from large companies like Facebook and Twitter. These companies revealed that they already employed their own experts and had no need to hire external ones through a platform like OpenTest. However, they expressed interest in a tool that would allow them to gather feedback from their own users, specifically segmenting that feedback from particular groups within their customer base. This feedback was a critical influence in Loom's decision to pivot away from the original concept of OpenTest and towards a more communication-focused tool that would eventually become Loom.

The second time "Loom Pro" was launched, several new features were introduced to encourage users to upgrade from the free version. These included:

• Desktop App: A dedicated desktop application was released.
• Drawing on Canvas: The ability to draw on the canvas and point to specific elements within videos was added.
• Call-to-Action (CTA) Buttons: Users could append CTA buttons to the end of their videos. An example given was a sales rep including a button to a DocuSign for contract signing.

These features aimed to provide more value and utility to users, thereby incentivizing them to convert to the paid "Pro" version.