Storm is excited for the Qumu team’s recent combination with Rimage (Nasdaq: RIMG). Rimage viewed this acquisition as transformational ,and clearly validates the vision Qumu (fka Media Publisher) had over 5 years ago about the importance of on demand and real-time video in the enterprise. Video assets have become increasingly important in the workplace, and the ability to deliver the right content to the right audience at the right time has become a strategic differentiator to several Fortune 100 companies. The market has shifted in Qumu’s direction, and we think this combination will help accelerate the rapid growth they have experienced over the last couple of years. Although the early vision was correct, the timing for the market to acknowledge this took longer and the Qumu team did a great job driving a “nice to have” to a “need to have” solution for several key customers.
We met the first generation of the Qumu team back in 2006, having been funded by a group of angel investor groups including The Halo Fund and Garage Technologies. We led the Series B in mid 2006 and by the end of the year realized that we needed to strengthen the team in order to grow the business. In 2007, Storm was actively involved in adding new customers and partners, one of which was Polycom, as well as changing our VP Sales, VP Business Development & Marketing, VP Engineering and also attracting a new CEO. Alex Mendez stepped in as interim CEO for a period of time.
In 2008 the focus changed to attracting new investors. We were fortunate to bring ATV and SAP on board in mid-2008. Qumu’s new VP of Engineering and founding CTO locked arms to revamp our product line while going after a market that had still not embraced the value of enterprise video management. Qumu continued to win key large customers that helped validate our value proposition as well as broaden our relationships with go to market partners (as well as losing some – Polycom acquired a competitor in early 2011).
Qumu started to experience sustainable growth in 2009 and 2010. The financing environment was challenging, and the existing syndicate continued to support the company because we believed that the market was finally shifting in our direction. We also started to realize that the market around us was consolidating. By now Qumu had assembled a great executive team and was clearly visible in the marketplace as a leader in our space. This combination led Qumu to Rimage and the rest is history.
Storm is thankful to the early founders for their vision of what Qumu could become and for the current management team for being able to execute and deliver on this vision. We think the upside lies ahead, combined with Rimage’s global footprint of customers. While Qumu took longer and was not a direct path to success, few things in life work out exactly according to plan. We continue to be shareholders of Qumu through Rimage and are excited about their future. We are as committed as ever to funding companies looking to shake up the establishment with new digital media solutions.