NEW YORK — Electric, a provider of IT technology for small and medium-sized businesses, has raised $90 million in Series D funding. Existing investor GGV Capital led the round, with participation from existing investors Bessemer Venture Partners, Primary Venture Partners, Greenspring Associates, 01 Advisors, Atreides Management, Vintage Investment Partners and Slack, bringing Electric’s total amount raised to over $189 million.
The new capital will be used to drive additional growth through investments in product development, customer service and company culture. Furthering its mission to make IT easy for small businesses, Electric plans to expand its partner and integration ecosystem and extend its IT management platform, providing more proactive tools for customers to efficiently manage employees, networks, devices and applications.
“We’re focused on building a company that can lead the market for a very long time,” said CEO and founder Ryan Denehy. “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.”
When Electric was founded in 2016, the average SMB had eight SaaS applications running simultaneously; today, that number is 88. IT is an acute pain point for small businesses navigating hybrid work scenarios, particularly given the rise in security threats and the proliferation of SaaS applications. Electric simplifies IT for small businesses, giving them a single platform to view, purchase and manage their entire IT infrastructure, as well as real-time support to free them from daily IT tasks that drain resources.
“The complexity of IT for SMBs has gone way up in the last 5-10 years, and is not going back,” said Jeff Richards, Managing Partner at GGV Capital. “SMBs spend $300-400 billion a year on IT in the US alone, a number that will continue to grow for decades as every industry is transformed by digitization, which only accelerated in the pandemic. In a recent survey we did of US SMB’s, 68% said their IT budget is increasing in 2021 vs 2020, and 71% said remote work had impacted their IT budget. We’ve been lucky to watch Ryan and his team build Electric from the Series B and are thrilled to be more than doubling down to lead this new round of financing.”
Over the past year, Electric reports a 183% increase in headcount (up to 444 employees) and a 111% increase in annual recurring revenue (ARR). Electric currently supports over 700 customers and 40,000 end users, including Morning Brew, Pacific Catch and Social Fly.
Electric’s IT platform includes: real-time support powered by 100+ IT technicians, security, device & inventory management, network & server management, application & cloud management, employee on-boarding and off-boarding, procurement & provisioning, and data monitoring & insights.