Wherever we are, remote work is still hot. Electric, a company that makes it easier for organizations to work remotely, is now a unicorn because of this trend.
The startup has raised $20 million in a Series D-1 from Harmonic Growth Partners and others, according to founder and CEO Ryan Denehy.
This raise, which comes just five months after the $90 million Series D raise, was at a slightly higher price than the last one and brings the valuation to $1 billion post-money.
Electric gives IT infrastructure to small and medium-sized businesses to take care of most of the grunt work of the IT department, such as deploy new hardware, keeping all machines and licenses compliant, granting and revoking permissions, etc.
The image is Electric.
Electric has been raising money aggressively as it has been used more and more. The capital raises and favorable market conditions have led to rapid growth. Electric said that it doubled users and revenue in the year 2021, leading to an annual recurring revenue expansion of 124%.
The company said that it will double again this year and bring its ARR to $70 million or more in the next few years.
Electric gave a clear window into the current state of valuations by sharing hard revenue numbers and targets. Electric is worth around 26x its present-day ARR. That is lower than the multiple range that many startup raised during the go-go fundraising climate.
If we consider that the company is well capitalized and won't need to raise again this year, things get even more interesting. The same $1 billion price tag means that Electric may close out with a $70 million ARR. Electric would be worth just over 14x its ARR, a multiple that feels cheap even at today's more limited market prices.
The capital was raised at a higher price. It didn't scale its value so richly in the process that it could find itself in a situation where it needs more capital in the future. If the company can hit its growth targets, it will look cheap going into the future, and it will have a good place to raise more capital if it needs to.
I wanted to expand our goals beyond the initiatives that we based the Series D around.
A few product initiatives are in the works for this year.
Electric is working on a lightweight version of the product that can be purchased and deployed through self sign-up. The company is working on a self-service marketplace that will allow clients to purchase add-ons or other software from Electric.
The company would like to deliver IT insights to its customers and offer recommendations to help them make decisions around security, new technology products and software updates.
Electric will benefit from the extra $20 million. Sinu and TechVera have been acquired by Electric.
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