This week, IT technology startup, Electric announced the completion of a $40M Series C funding round. The round, led by Greenspring Associates, comes less than a year after Electric raised a $21.5M Series C round; with their latest investment, Electric has successfully raised just over $61.5M in funding, in the last year alone. The IT startup says the new capital will help them continue to grow sales and marketing as they look to be the top managed service provider in the US.
Why this transaction?
The York IE team chose this as our transaction of the week as an opportunity to discuss the continued shift to cloud and how that shift is affecting the managed service provider market. For small and medium-sized businesses looking to digitize their operations, MSPs can provide organizations with valuable IT support without requiring large investments in personnel or software. Organizations utilizing MSPs, like Electric, can reduce and even eliminate time spent on administrative IT tasks; as a result, employees have more time to collaborate and work on strategic projects. In 2020, Electric doubled its headcount and revenue growth as the company looked to capitalize on the abrupt shift to remote work. With many small to medium-sized businesses working remotely, organizations began shifting to MSPs like Electric in an effort to maintain productivity and business continuity. As cloud transformation continues to expand across every industry, managed service providers can capitalize on this shift by providing small to medium-sized businesses with SaaS-based IT support.
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