DimDim Gets $6 Million in Series B Funding

by Sam Dean - Jul. 09, 2008Comments (1)

DimDim, which makes my favorite open source online meeting application, has announced that it has raised a global round of $6 million in Series B funding, led by existing investors Index Ventures, Nexus India Capital, and Draper Richards, from the US, Europe, and Asia. According to DimDim officials the new funding will enable the company to enhance its application and expand its reach. DimDim plays in a crowded field, but I continue to like its prospects.

DimDim is free to use, and is very competitive with players such as Yuuguu and Yugma, which offer free editions but aren't developed on an open source basis. According to an announcement from DimDim:

"Dimdim has had an incredible ten months since our private launch at DemoFall 2007. Now more than 500,000 people in more than 180 countries have attended Dimdim Web Meetings," said DD Ganguly, ceo and co-founder of Dimdim. "This additional investment from our original funders, those that invested in companies such as Hotmail, Skype, and MySQL, proves that Dimdim will democratize unified collaboration just as their previously funded companies democratized their respective fields."

The online meeting space remains crowded, and a lot of the players in it provide free plans, but DimDim has a very loyal user base. It's good to see it continue to get funding. Like many of the other players in this space, I expect that paid, extended service plans will become a lucrative model for DimDim. That's the path that players such as Yugma have taken--extending a free offering with paid plans--and it appears to be working.