Nexthink Secures $180M Series D Funding at $1.1B Valuation

Improving Internal IT Support: Nexthink Secures $180 Million

Many organizations prioritize enhancing the customer experience, but for Information Technology departments, their primary users are the company's own staff. Nexthink, a growing company focused on optimizing IT services for internal users, recently announced a $180 million Series D funding round, resulting in a valuation of $1.1 billion.

Funding Details and Company Background

Founded in Lausanne, Switzerland, with additional offices near Boston, Nexthink received this investment from Permira, alongside contributions from Highland Europe and Index Ventures. According to Crunchbase, the total funding raised by the company now exceeds $336 million.

The Growing Importance of Employee Digital Experience

Understanding how employees interact with company technology is consistently valuable. However, the shift to remote work during the pandemic significantly increased the need for this type of data and insight.

Nexthink’s Unique Approach to IT Monitoring

Nexthink CEO and co-founder Pedro Bados explains that traditional monitoring tools typically concentrate on system functionality and troubleshooting. Nexthink differentiates itself by focusing on employee adoption and experience with the tools provided.

Shifting the Focus to the Employee Perspective

“Our approach at Nexthink is to reframe the monitoring challenge entirely,” Bados stated. “We aim to provide IT departments with a real-time understanding of how employees are experiencing their IT environment.”

The company prioritizes understanding issues from the employee’s viewpoint. “Ultimately, we deliver insights to IT departments to facilitate improvements in the digital experience for their employees,” he added.

Gathering Employee Feedback

This involves collecting data from users, similar to how Human Resources and marketing teams utilize surveys to gauge employee or customer sentiment. Analyzing this data enables IT to better understand technology usage patterns.

Target Market and Current Success

Nexthink’s software is designed for larger enterprises, specifically those with a minimum of 5,000 employees. Currently, the company serves over 1,000 such customers, including prominent organizations like Best Buy, Fidelity, Liberty Mutual, and 3M. Furthermore, Nexthink has achieved an annual recurring revenue exceeding $100 million, a key indicator of success for Software-as-a-Service (SaaS) businesses.

Building a Diverse and Inclusive Workforce

Nexthink currently employs 700 individuals and intends to expand to 900 by year-end. As a maturing startup, Bados emphasizes the importance of cultivating a diverse workforce.

Prioritizing Diversity in Recruitment

Geographic diversity is naturally present due to the company’s locations in two countries. However, Bados believes that a more comprehensive approach is necessary, beginning with recruitment practices. “We ensure a balanced candidate pipeline, which is a metric we actively track,” he explained.

A dedicated diversity committee is also in place, responsible for delivering diversity training and developing strategies for building a more inclusive workforce.

Future Plans and Growth Strategy

Despite a strong valuation and substantial funding, Bados does not anticipate an Initial Public Offering (IPO) for at least two years. He aims to significantly grow the business, ideally doubling or tripling its size, before considering such a move. With $180 million in new funding and $100 million in ARR, Nexthink is well-prepared to pursue its future objectives.