Open source web conferencing startup Dimdim, headquartered in Burlington, Massachusetts, with development operations in Hyderabad, recently raised $6 million in Series B funding from Draper Richards and existing investors Index Ventures and Mumbai-based Nexus India Capital. In its first round, the company had raised $2.4 million. The company, which has three products just out of beta — Dimdim Free, Dimdim Pro and Dimdim Enterprise — employs 19 people across its offices in the US and India. Co-founder and CEO, DD Ganguly (photo), who sold his first company AIM Inc in 2001 to Computer Associates, spoke to Startupcentral about how the company will deploy the fresh funds, revenue streams and the curious story of how Dimdim came to be known by its name. Edited excerpts:
You’ve raised venture money in a difficult fund-raising environment. How tough was it?
In our case it was not so difficult because we were not actually planning to raise money at this point of time. Because Dimdim has a lot of traction in the open source community and after our launch a lot of venture capitalists came to us. Our plan was to raise money a few months later into the year. But since venture capitalists started speaking with us around December…we were just having casual conversations at the time…we got multiple term sheets in this difficult environment.
You have an interesting mix of investors — two based in the US and one in Mumbai. What does this combination bring to the table?
If you look at the investors collectively — Draper Richards, Index Ventures, Nexus India Capital — the three have very rich experience in collaboration software and also in open source software.