The video conferencing company Fuze’s valuation was just cut in half

Fuze, a messaging and video conferencing company to use with your colleagues at work, just raised money at deal terms that value the company at about half of what it was valued a year ago.

Fuze said Wednesday that it had raised another $150 million in a round led by Summit Partners. But that financing happened at about a $400 million valuation, including the new capital, according to a fundraising document obtained by PitchBook. Fuze’s last round of financing last spring made the company worth about $765 million including the new money, PitchBook says.

Its CEO said at the time that it would be their “one last round pre-IPO.” That obviously wasn’t the case.

This is a sharp decline in valuation, but one that makes sense given the new battle it is waging against dominant workplace tools like Slack and Zoom. That sort of drop is likely to hurt Fuze employees who will see the value of their common shares fall.

Originally just a voice over IP company, it rebranded as Fuze in 2016 as it expanded into other communications platforms like video.

Fuze declined to comment on its valuation or dispute PitchBook’s estimate. The company’s CEO, Colin Doherty, said in a statement that the company had “great momentum” as it launched an updated version of its product platform.

All of the investors in this round are from existing backers like Bessemer Venture Partners. The company has now raised almost $500 million in venture capital.

This article originally appeared on Recode.net.

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