IT plays an increasingly important role for businesses of all shapes and sizes, which is why IT services provider Electric won’t stop growing.
On Tuesday, the NYC company announced that it raised $90 million in a Series D funding round. This comes just eight months after Electric raised $40 million in its Series C. So far, the company has raised a total of more than $189 million in funding.
Electric has built a platform that provides real-time IT support — ranging from cybersecurity, to device management, server and network support and more — to small to medium-sized businesses. Electric targets this demographic because small to medium-sized businesses don’t always have the budget to build their own internal IT team. Yet at the same time, many of these SMBs rely on an array of tech solutions to conduct their business — especially in the age of remote work and cloud computing.
Electric says that back in 2016 (when the company was founded) the average SMB had eight SaaS applications running simultaneously. Since then, that number has grown to 88 applications. With this growing tech adoption, it’s important for Electric to help provide IT support, in order to prevent a tech issue from becoming a business bottleneck.
And as tech adoption grows, so too does Electric’s business. The company grew its annual recurring revenue by 111 percent over the past 12 months. During this time, Electric also grew its employee headcount by 183 percent. The company now has around 440 employees, and is still hiring for dozens of open roles.
The new Series D investment will help the company continue this growth trajectory. Electric says that it plans to invest new capital into product development, customer service and company culture.
“We’re focused on building a company that can lead the market for a very long time,” Electric CEO and founder Ryan Denehy said in a statement. “Our existing investors share that vision, so we were thrilled to be able to complete the Series D without bringing on any new capital partners. It’s a testament to the belief everyone around the table has in our technology and Electric’s future.”
GGV Capital led the Series D round, with participation from Bessemer Venture Partners, Primary Venture Partners, Greenspring Associates, 01 Advisors, Atreides Management, Vintage Investment Partners and Slack.
