By Matthew Field

Hopin, the video events company that was Europe’s fastest-growing start-up ever during the pandemic, has sold its digital conferences arm for just $50m (£39m).

The business was valued at $7.75bn just two years ago as Covid forced companies to hold meetings online, marking it as a technology “unicorn”, a privately owned start-up with a $1bn valuation.

Hopin raised $1bn from venture capital investors after launching its app just as lockdowns shut down the world economy.

But now it is selling its digital events business after workers returned to the office and in-person conferences made a comeback.

Hopin declined to say how much the deal was worth. However, in a disclosure to US markets, video conferencing company RingCentral, which acquired the division, said it had paid just $15m upfront, with a further $35m available depending on how the business performs.

A Hopin spokesman did not respond to requests for comment about the price.

In an example of how Covid caused major adjustments to start-up valuations, Hopin was valued at $2bn in November 2020 and then spiralled to $7.75bn by August 2021.

The deals made Johnny Boufarhat, the company’s 29-year-old chief executive and founder, a paper billionaire. The Hopin boss also sold in excess of £100m in shares in the business.

While it has carved off its events arm, Hopin said it had retained its video streaming and hosting division, adding it was working on a new “community” product. The company said it had a “strong balance sheet” and profitability.

As well as revealing the sale, Mr Boufarhat has stepped down as chief executive.

Other companies that boomed during the pandemic have endured sharp falls in valuation. Shares in Zoom, the US video conferencing company, have plummeted 88pc since their high point in 2020.

Hopin told The Telegraph the business units it had sold to RingCentral were now only a small part of its business. “These two are minor business units compared to what remains of Hopin,” a spokesman said last week.

The spokesman added: “Going forward, Hopin maintains a strong and growing balance sheet, large capital balance, profitability and positive cash flow.”