Zoom (ZM) will get beyond its privacy challenges, says one early backer.
“I do believe and truly trust they will do the right thing to keep us all connected, secure and safe,” said Emergence Capital Partners general partner Santi Subotovsky on Yahoo Finance’s The First Trade.
Subotovsky currently sits on Zoom’s eight-member board of directors. The firm was among the early backers of Zoom and founder Eric Yuan. They continue to hold shares in Zoom, according to the company’s website.
“The company has always been focused on doing the right things for its users, and I believe in challenging times that’s when companies and leaders show what they are truly made of. In this scenario we are experiencing right now, I believe Eric [CEO Eric Yuan] and the company have done exactly the right thing,” says Subotovsky.
That’s not to say Zoom and Yuan aren’t going through one of the most challenging times in its young history.
The explosion in the use of Zoom amid the coronavirus pandemic has exposed privacy issues. Zoom bombing — where hackers inexplicably jump into a Zoom call — have increased in frequency over the past two months of heightened consumer and business use.
Yuan has apologized for the issues, and has worked diligently to hire security and privacy experts to fix the problems. Many of the security flaws in Zoom are expected to be addressed within the next 90 days, Yuan has said.
Despite the well-publicized uproar over Zoom’s security, the stock has continued to stay hot. The stock has surged 95% in the past three months, and has climbed toward its all-time high achieved in late March.
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