How Loom Scaled from a Chrome Extension to a $1B Exit

Introduction

Loom began life as an internal project named Opentest that aimed to simplify usability tests. When no traction came, the founders noticed users kept returning to a single feature: video recording. Within 24 hours of rebranding to Openvid, 3,000 new users signed up. That flash of interest led to a full redesign, a second rebrand to Loom, and a relentless focus on a single, must-have feature.

Early Pivot

Rather than build dozens of bells and whistles, Loom’s team stripped everything back and asked one simple question: what do people actually use? They removed features that diluted the core experience and released a Chrome extension that let anyone click, record, and share a link in under 10 seconds. That ease-of-use turned recording from a chore into a habit.

User-Driven Growth

The founders spent hours on calls with new users, asking how the tool fit into their workflow. They learned remote teams craved quick status updates and bug reports via video. By tuning the product to those needs—adding basic trimming, annotations, and permission settings—they made Loom indispensable. Each update shipped with tweaks based on real feedback, not guesswork.

FOMO Notifications

One of Loom’s quietest but most effective tactics was a simple notification: “Your video has been viewed.” That ping nudged users back into the app to check stats, respond to comments, or record another video. It tapped into a mild fear of missing out and kept engagement high without flashy email campaigns or paid ads.

Viral Loops

Every Loom link embeds the logo and invites recipients to try the product with one click. Each shared video acts like free advertising in a Slack channel or email thread. As teams forwarded updates and tutorials, new audiences discovered Loom organically. That viral loop drove exponential sign-ups without a massive marketing budget.

Conclusion

Loom’s rapid climb from a failed usability tool to a billion-dollar exit shows that focus, user feedback, and smart product hooks can outpace big budgets. By zeroing in on one core feature, shipping fast, and letting users spread the word, Loom proved that simplicity and psychology can combine to deliver explosive growth.