Zoom CEO Eric Yuan must have extremely mixed feelings about Coronavirus over the last few weeks. On one hand, it’s a global tragedy that has literally killed thousands of people. The global economy has been utterly decimated, with millions filing for unemployment. On the other, it’s doubled Yuan’s net worth, showcasing the paradox of success during a time of crisis.
Born in China in 1970, Eric Yuan's journey was filled with challenges right from the start. He has a Master’s Degree in engineering from China University of Mining and Technology. In 1994, he took a leap of faith moving to Japan for a job that required a four-month stint. During this time, he attended a speech by Bill Gates that inspired him to move to the United States, igniting his ambitions in the tech world.
However, his aspirations were met with hurdles, as Yuan faced rejection multiple times while trying to obtain a visa. In total, his visa applications were rejected eight times over two years. But persistence paid off, and by 1997, he finally secured a visa and landed a position at WebEx, where he quickly climbed the ranks to become Vice President of Engineering. This early experience set the stage for his entrepreneurial journey.
First, a little background
Eric Yuan's early career at WebEx was crucial in shaping his vision for video conferencing. The company was acquired by Cisco in 2007 for $3.2 billion, where he continued to rise in the ranks, eventually becoming Corporate Vice President of Engineering. His experiences at Cisco provided him with insight and knowledge that would later prove valuable in his own venture.
| Personal Detail | Information |
|---|---|
| Name | Eric Yuan |
| Birth Year | 1970 |
| Education | Master's Degree in Engineering from China University of Mining and Technology |
| Company Founded | Zoom Video Communications, Inc. |
| Net Worth (2020) | $8 Billion |
Founding Zoom
In 2011, Eric Yuan saw an opportunity in the burgeoning field of video conferencing, leading him to found Zoom. Unlike existing platforms, Zoom aimed to cater to business-to-business customers rather than the general consumer market. This strategic focus allowed the company to carve out a niche in a crowded field.
By 2014, Zoom had amassed 10 million total users, and by 2015, that number skyrocketed to 40 million. The company attracted significant investment, including $30 million in series C funding, which helped propel its growth. In 2017, Zoom's market value hit $1 billion, following a $100 million investment from Sequoia Capital, marking a significant milestone in its journey.
(Photo by Kena Betancur/Getty Images)
IPO
Zoom went public on April 18, 2019, with Eric holding a 19% stake in the company at the time of the IPO. The stock price soared by 72% on its first trading day, instantly increasing Eric’s paper net worth to $3 billion. This remarkable debut set the stage for what was to come as the world faced the unprecedented challenges of the COVID-19 pandemic.
Coronavirus Hits
As the world grappled with the outbreak of Coronavirus in early 2020, the demand for remote communication skyrocketed. Millions of people were suddenly required to work from home, and Zoom emerged as a go-to solution for virtual meetings. This surge in usage dramatically boosted Zoom's stock price, propelling its market cap from approximately $16 billion to $42 billion.
With this growth, Eric Yuan saw his net worth rise from $3 billion to an astonishing $8 billion in just a matter of weeks. This 62% increase was largely attributed to the surge in demand for Zoom's services amid the pandemic, highlighting the stark reality that success can stem from tragedy. How does one navigate such mixed emotions in the face of personal wealth gained through a global crisis? That is the dilemma Eric Yuan faces as he continues to lead Zoom into the future.
