The Rise of Cloud-Based IT Solutions

The impact of the pandemic on enterprise-level startups has been demonstrably positive. With the widespread shift to remote work and fundamental changes in work methodologies, technology companies offering streamlined transition solutions have experienced significant demand.

Electric Secures $40 Million in Series C Funding

One prominent example is Electric, a company focused on migrating IT infrastructure to the cloud. They have recently announced the completion of a $40 million Series C funding round, adding to previous investments. This follows a Series B extension in March 2020, totaling $14.5 million, and a further $7 million from 01 Advisors in May 2020.

Investment Details

Greenspring Associates spearheaded this Series C round. Existing investors, including Bessemer Venture Partners, GGV Capital, 01 Advisors, and Primary Venture Partners, also participated. New investors, such as Atreides Management and Vintage Investment Partners, joined the funding effort.

Simplifying IT for SMBs

Founded in 2016, Electric’s core mission is to simplify IT management for small and medium-sized businesses. Instead of hiring dedicated IT staff or relying on expensive external service providers, Electric’s platform empowers a single administrator to oversee devices, software licenses, user permissions, and more.

Focus on Administrative Tasks

According to founder Ryan Denehy, the majority of IT workload centers around the administration, deployment, and upkeep of various software applications. Electric assumes responsibility for these tasks, allowing businesses to concentrate on resolving user-specific issues as they arise, rather than managing the entire IT ecosystem.

Growth and Revenue

Electric operates on a per-user, per-month subscription model. The company has reported more than doubling its customer base in the past year. Currently, it supports approximately 25,000 users across over 400 organizations, resulting in an Annual Recurring Revenue (ARR) nearing $20 million.

New Product Offering

This marks the first instance of Denehy publicly disclosing revenue figures. The company has recently launched a more accessible, streamlined product version. This offering includes all core functionalities of the premium product, excluding the live chat support feature.

Prioritizing Simplicity

“Our primary focus is on simplicity,” stated Denehy. “This is driven by the growing recognition of the permanence of hybrid work models. Throughout the pandemic, while businesses reduced real estate costs, our services remained essential. Consequently, we began exploring ways to provide more accessible options for businesses to initiate their journey with our platform.”

Strategic Acquisition of Sinu

To broaden its reach beyond the technology sector, Electric acquired Sinu, an IT service provider with a diverse client portfolio. Sinu’s clientele includes organizations in legal, accounting, and nonprofit sectors.

Commitment to Diversity and Philanthropy

Alongside business expansion and customer growth, Electric is also dedicated to enhancing its diversity initiatives and philanthropic contributions.

Employee Demographics

The Electric team currently comprises nearly 250 full-time employees. Approximately 32.5% are women, and around 30% identify as non-white. Specifically, nearly 12% of employees are Black and 10% are Latinx.

Investing in Inclusive Hiring Practices

Denehy emphasized his belief that the company’s payroll, amounting to tens of millions of dollars, represents a significant opportunity for positive impact. “We are prepared to extend the hiring process to ensure a diverse candidate pool,” he explained. “Some founders claim a lack of applicants, but the truth is they haven’t actively sought diversity. We accept that filling certain roles may take longer.”

Total Funding to Date

This latest funding round brings Electric’s total funding to over $100 million.