Parsec Raises $25 Million in Funding for Its Live Video Streaming Service

By Elijah Labby Friday, January 8, 2021

During the coronavirus pandemic, many businesses have had to endure restrictions and millions of people have been forced to work from home. This has required the widespread use of video communication tools to keep in contact with colleagues about projects one is working on while the office is closed. Similarly, the practice of playing video games has also skyrocketed during the pandemic using these technologies.

This is where Parsec comes in. The startup allows users to remotely connect to their computers as well as stream both their work and play activities. The technology, according to Alley Watch, is a favorite among several large companies familiar to gamers and business professionals alike, such as EA, Ubisoft, and Square.

This year, in order to accommodate businesses struggling to keep workers connected during quarantine, Parsec launched Parsec Teams, which allows users to work on the same file together remotely in an encrypted and low-latency project.

The company’s CEO Benjy Boxer, in an interview with TechCrunch, said that the Parsec experience is incomparable.

“The performance of Parsec is just way above everything else,” he said. “People forget they’re using Parsec.”

Boxer also said that he believes the remote work economy will continue for some time — even if only in part. In that case, Parsec allows workers to access information from the same computer they use from work remotely, allowing for a seamless transition from work in the office to work-from-home.

“So in that scenario, people are bringing their computers back to the office, and they can use Parsec to make sure it’s always accessible to them,” he said.

Investors are loving Boxer and Parsec’s results. The startup recently raised $25 million in Series B funding for the continued expansion of the project. The funding was led by Silicon Valley-based venture capital firm Andreessen Horowitz, with participation from previous investors Lerer Hippeau, Makers Fund, NextView Ventures, and Notation Capital.

Parsec’s total funding now sits at $33 million.

Parsec’s Two Markets

One of the most interesting things about Parsec’s success is its position within two very different markets. The video game streaming market and the team collaboration software market are generally aimed at disparate groups, so the company’s role in bridging them is notable.

However, this disparity in markets could mean twice the opportunity for the startup, and both industries are growing at a steady pace.

The game streaming market, for one, is growing at a compound annual growth rate of about 9%. Market research firm Mordor Intelligence notes that the game streaming market is still developing, so the time is ripe for consumers new and old to find products that suit their needs.

Furthermore, key players in other industries like Amazon and Google are also attempting to get into the video streaming market — a clear sign that Parsec is on the right path.

The team collaboration software market is anticipated to grow at a rate of over 13% in the next seven years, according to Fortune Business Insights, eventually reaching a valuation of $35 billion in 2027.

These are impressive numbers, and the Parsec’s potential to cross over these two, only tangentially-related industries, will be something to watch.

Gaming First, Work Later

From the beginning, the company’s founders say they believed that if their service could handle gaming, it could handle work.

“From the beginning, we thought that if we could build something that is great for gaming, it will be great for everything,” Boxer said.

He’s right.

Most modern video games, multiplayer or not, require massive computing power — far more than average software applications like Microsoft Office. By focusing on gaming first, the startup has placed emphasis on superior streaming power. This may make all the difference when customers compare Parsec’s offering with those of its competitors.

The startup’s focus on innovation and customer satisfaction, in and out of the gaming world, combined with the momentum already created through rising market values, gives Parsec a unique opportunity to become a key player in these dual markets. The funding they’ve raised will only help them achieve that vision sooner.

About the Author

Headshot for author Elijah Labby

Elijah Labby is a graduate of the National Journalism Center. He has previously written for Broadband Breakfast, a technology and internet policy website.

Related Articles