Stream raised a $15 million Series A round to develop APIs that enable rapid creation of chat and activity feeds for product teams.

The Early Struggles

Earlier this year, the founders of Stream, a five-year-old startup with offices in Boulder and Amsterdam, weren’t feeling particularly optimistic about their future. The spread of COVID-19 hit hard, causing many of their smaller customers—whose APIs power chat and activity feeds for product teams—to go out of business. Thierry Schellenbach, one of the founders who started Stream alongside Tommaso Barbugli, recalls the anxiety that followed:

"It was really scary when [the virus] initially hit because a lot of our smaller customers went out of business, which made us worry about what would happen to the larger ones. One of those larger ones did close its doors, and I remember stepping into their office one last time as they prepared for closure," Schellenbach says.

The company’s product, designed around real-time activity feeds such as messages, calls, and video meetings, had found a niche in certain industries but struggled to scale across the broader market. The departure of key customers left Stream with fewer resources and less momentum, leading the founders to question their path forward.

A New Direction: Expanding into New Industries

Despite the challenges, Stream began branching out into new areas where its technology could have a more significant impact. The company quickly became known for its expertise in education, healthcare, and telecom infrastructure. Here are some of the ways Stream has adapted:

Education

Stream’s activity feeds proved particularly valuable to educational institutions. The platform’s ability to provide real-time updates on student interactions, attendance, and engagement made it an indispensable tool for teachers and administrators.

"We’ve worked with universities across the country," says Schellenbach. "It helps them manage large classes efficiently, especially during peak times when students are most active."

Healthcare

In the healthcare sector, Stream’s technology was utilized by medical facilities to monitor patient activity in real time. The system allowed healthcare providers to track patients’ activities and communicate with other healthcare workers seamlessly.

"We’ve been working closely with hospitals and clinics across the country," says Schellenbach. "It’s helped them improve communication and care in some of the most challenging environments."

Telecom Infrastructure

Stream also provided essential connectivity solutions for telecom infrastructure projects. Its feeds enabled operators to monitor network performance and troubleshoot issues quickly.

"We’ve been working with telecom companies on a number of infrastructure projects," says Schellenbach. "It’s been a key part of their ability to provide reliable service."

Finding Success Through Expansion

The pivot away from its original product line didn’t come without hiccups. Stream faced challenges in adapting its technology and meeting the needs of its new customers. However, with consistent innovation and a willingness to learn from its mistakes, the company began to see growth.

The Series A Funding Round

In late 2023, Stream successfully raised $15 million in a Series A funding round, marking a significant milestone in the company’s history. The investment came from GGV Capital, a leading European VC firm known for its approach of prioritizing execution over process.

"GGV Capital approached us with a very direct request: ‘We want to build a bridge between our expertise and Stream’s market potential,’" says Schellenbach. "We had some concerns, but their interest in the technology was clear."

The Series A round included participation from Datadog CEO Olivier Pomel, who expressed confidence in the company’s ability to scale:

"Stream is at the forefront of real-time communication solutions," says Pomel. "I believe they have the right combination of innovation and execution to make a big impact."

The Deal Execution

The deal was executed with speed and precision, reflecting GGV Capital’s reputation for nimbleness during turbulent times.

"GGV Capital took great care in making sure all our connections were properly established," says Schellenbach. "They really treated us like a startup and kept their commitments."

Post-Funding Growth

With the Series A funding behind them, Stream has been on an upward trajectory. The company has grown both organically and through strategic acquisitions, further solidifying its position in the market.

Key Themes of Success

The company’s success can be attributed to several key factors:

1. Focus on Innovation: Stream continues to experiment with new technologies to enhance its product offering.
2. Strong Customer Relationships: The company maintains close ties with existing clients, ensuring smooth scaling.
3. Agile Execution: GVV Capital’s approach of being customer-centric and agile has been instrumental in executing deals effectively.

Looking Ahead

As the company continues to expand its reach and refine its technology, Stream is poised for further growth. With a strong foundation built on innovation and strategic investments, the company is well-positioned to capitalize on future opportunities.

Closing Thoughts

The story of Stream is one of resilience and reinvention. From navigating the challenges of COVID-19 to leveraging new industries and securing significant funding, the company has demonstrated its ability to adapt and thrive in dynamic market conditions. As it continues to grow, Stream remains focused on delivering value to its customers while staying at the forefront of technological innovation.

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