Vidyo, Inc., founded as Layered Media, now part of Enghouse systems provides software-based collaboration technology and product-based visual communication products. The company's VidyoConferencing products are the first in the videoconferencing industry to take advantage of the H.264 standard for video compression, Scalable Video Coding (SVC). The firm's implementation of this technology enables video communication across general purpose IP networks. History Vidyo was founded by Ofer Shapiro, who had developed the first IP video conferencing bridge and programmable gatekeeper technology at Radvision. He left Radvision in early 2004 to develop improved video conferencing networks. Packet loss and latency that accompanies general purpose IP networks posed significant challenges to the existing systems. Costly dedicated networks and expensive Multipoint Control Units (MCU), which exacerbated delay due to transcoding or forced all endpoints to conform to the least common denominator endpoint quality, were the only products the industry had to offer at that time. He realized that to take advantage of state of the art H.264 compression technology, the fundamental technology behind video conferencing systems had to change Shapiro's efforts resulted in a paradigm shift for the video conferencing industry - a new system architecture. It was based upon Scalable Video Coding (SVC) which allowed for error resiliency which was absent in monolithic encoding schemes that were common throughout the industry. Implementation of SVC for only some system components offered little value. The full benefit of SVC required re-designing both the endpoint (client) and MCU (server), a costly and time-consuming proposition for incumbent providers of video conferencing systems. Unencumbered by a legacy product line, Shapiro developed a new architecture in which the MCU was replaced with a low-cost router and all of the encoding and decoding was done at the end points. At the end of 2004, Shapiro obtained support from Avery More in early 2005; and secured seed funding by October 2005, led by on Bayless of Sevin Rosen Funds. Operating in stealth mode through the beginning of 2007, Shapiro's team created a video conferencing product with HD quality video, that effectively addressed the interactivity inhibiting delay common in legacy systems, and enabled each end point to send and receive at its highest quality levels, irrespective of the other end points and the network. Layered Media licensed its technology to its first OEM customers early in 2007. In June 2007 Layered Media secured series B funding, with Rho Ventures joining in to lead