Most tech unicorns are the product of Silicon Valley’s well-oiled VC machine—but Cloudinary’s instantly successful idea made it profitable from day one and it now boasts an almost billion-dollar valuation.is adamant that ambitious entrepreneurs should certainly fill their coffers with venture capitalists’ money if they get the chance. “The only consistent way to get to be a billion-dollar company is to go the VC route,” the Cloudinary CEO declares. “That, hands down, will always win.
Lahan says the company simply never needed venture money. The founders came up with the idea for the business while running a consulting firm in Israel that built technology for other startups. The clunky software they had to use to manage videos and photos convinced them to create something better. Their consulting clients were Cloudinary’s first customers, which enabled it to turn a profit as soon as it opened its doors.
Cloudinary’s software automates the drudgery of resizing and reformatting digital content for devices and Web browsers, and it ensures that videos and photos load lightning-fast—a must in an era when consumers will click elsewhere upon encountering the slightest delay. Cloudinary also uses artificial intelligence to suggest the best way to present photos and videos to capture people’s attention.
Few startups are that lucky, which is why Lahan thinks nearly all entrepreneurs should take venture capital as they hunt for revenue.
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