Splashtop, a remote access and support platform for businesses, has raised $50 million in a round of funding led by Sapphire Ventures, valuing the company at $1 billion.
The raise comes as businesses of all sizes have had to embrace remote work due to the global pandemic, opening the door to companies such as Splashtop which were designed with “remote” in mind from the get-go. The San Jose-based company, which was founded in 2006 as DeviceVM and already claims to be profitable, said that its business grew more than 160% in 2020, with its remote access traffic more than tripling.
In a recent report identifying the top trends impacting infrastructure and operations for 2021, Gartner identified “anywhere operations” as the number one trend. It noted:
Gartner expects that 48% of employees will work from home, even after the pandemic, compared with 30% pre-pandemic. This shift will force IT executives to develop flexible and resilient organizations that enable staff to work from anywhere, allow customers everywhere to access services, and manage the deployment of business services across distributed infrastructures.
Splashtop solves two main problems. Virtual private network (VPN) use surged in 2020 as businesses sought to secure their home workers’ networks, but with hundreds or thousands of people connecting to a corporate network through a VPN, this can be a drain on IT resources, slow down traffic, and even compromise security.
Remote access tools such as Splashtop, which ca be deployed on-premises or in the cloud, allow businesses to open access to a specific device or application rather than opening the entire network as is the case with a VPN. The U.S. Cybersecurity and Infrastructure Security Agency (CISA) last year warned of some of the pitfalls of using VPNs, noting that because VPNs are 24/7, organizations are less likely to keep the VPN infrastructure updated with the latest security updates and patches due to the largely manual nature of the work.
“During COVID, enterprises and SMBs are coming to Splashtop to enable work-from-home, bypassing legacy VPNs which do not scale and face many reliability and security challenges,” Splashtop founder and CEO Mark Lee told VentureBeat.
Underpinning the Splashtop platform is AI, machine learning (ML), and data analytics which it uses to monitor traffic patterns or cloud computational resources, issuing an alert if it spots anomalies or suspicious activity.
Lee said that companies including Disney, CBS, NBC, and the BBC are also using Splashtop to edit videos using a copy of Adobe Premiere Pro that is installed on a local machine. “Schools are [also] using Splashtop to enable remote learning through accessing school labs running Adobe, Autodesk, and other specialized software that students don’t have at home,” he added.
Additionally, with technical support teams no longer available to help in-person, Splashtop offers cloud-based remote support for IT teams to log in and troubleshoot their employees’ machines from afar.
Splashtop offers an enterprise-specific service which includes extra features such as single-sign-on (SSO), with integrations for Microsoft Active Directory, JumpCloud, OKTA, OneLogin, and more. Moreover, companies can integrate Splashtop into enterprise services such as Salesforce, Jira, Zendesk, Freshdesk, and ServiceNow, so that support teams can help their end users without having to switch from their help desk tool of choice.
Prior to now, Splashtop had raised $46 million, with its last tranche of funding falling a decade ago when it was still known as DeviceVM. The company rebranded as Splashtop in 2010, taking the name of its popular remote support software.
Although “unicorns” are pretty much dime-a-dozen in the technology realm these days, Splashtop claims one notable differentiator from many of the billion-dollar-plus valued companies — it has been profitable since 2015. Its latest cash injection will be used to capitalize on its rapid growth over the past year, which has seen its profit margins hit 60%.
Other investors in this latest round include Storm Ventures, NEA, and DFJ DragonFund.
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