Fathom, an AI note-taking app that works exclusively on Zoom calls, raised $4.7 million in a round led by Zoom itself through its new Zoom Apps Fund, created to develop new programs to complement the video calling service.
The round also included a cavalcade of investors, including early Zoom backers Maven Ventures, Bill Tai, Matt Ocko, and the CEOs of Reddit, Twitch, Cruise, Mercury, People.ai, Snapdocs and Shogun. Character, Active Capital and Global Founders Capital also participated.
The move signals the continued push by San Jose-based Zoom to beef up the functionality of its core product through third-party developers. The company's stock price (NASDAQ: ZM) has been on the decline due in part from the recent massive tech sell-off and workers returning to the office and relying less on teleconferencing apps.
But Richard White, founder of San Francisco-based Fathom, says he's “not worried” over what a return to the office could mean for Zoom and its complementary suite of apps.
“For customer calls, which is our bread and butter, most of these were already on Zoom or trending in that direction, and I don't think we're going to see companies rush back to doing in-person meetings with customers now that they know video calls work well,” White told me over email. “For internal meetings, I think there could be some pull back, but given that it's likely most in-person businesses will have at least some remote folks on the team, I think you'll see a lot of those meetings stay on Zoom even once there's some percent of folks back in the office.”
Fathom seeks to make Zoom meetings more efficient by allowing participants to record sections of the meeting so the audio can be automatically transcribed. The app’s AI can also highlight key moments and insights from the meeting and share them over CRM platforms and Slack channels.
The company was founded in 2020 and was a member of Y Combinator’s winter class of 2021.
The app is currently the most popular app on the Zoom App Marketplace, available for a free download, but White says the company plans to earn revenue in the future through advanced features geared toward enterprises.
The Fathom investment marks the third round of the $100 million Zoom App Fund investments. Twenty-five companies have received funding in the two rounds.
