The new round, led by BlackRock with participation from existing investor General Atlantic, brings the company’s total funding to more than $165 million. The new round comes amid growing demand for employees to securely and easily access work tools as more have shifted to a work-from-home model due to the COVID-19 pandmeic, said co-founder and CEO Rajat Bhargava.
The company was not actively fundraising after raising $50 million in May 2019, Bhargava told Crunchbase News. Instead, the new round was a preemptive raise as the pandemic has accelerated the business and attracted investor interest, he said.
JumpCloud’s platform allows customers to self deploy a cloud-based directory service that gives users one set of credentials to securely connect to applications, work systems and more regardless of where they are or what platform they are using. The solution helps replace older, on-premise domain centric solutions, such as Micoroft’s Active Directory, Bhargava said.
Founded in 2012, the company says it now has more than 3,000 paying customers and is used by more than 100,000 organizations in over 100 countries. It focuses its sales on the small and medium-sized enterprise (SME) market, with most customers having somewhere between 50 and 5,000 seats, Bhargava said.
Gary Reiner, an operating partner at General Atlantic, said the focus on the SME market makes sense since JumpCloud’s platform is easy to deploy and use — a necessity for companies without large IT departments. Reiner added the solution also can scale and grow as its customers do.
JumpCloud plans to use the new money to expand product development and add to its marketing and sales team. The company has just less than 300 employees, but plans to hire 500 more in the next two to three years, Bhargava siad.
Although JumpCloud does not disclose financial information, Bhargava said the increase in security needs and zero trust networks should help drive growth. While he declined to speculate if the company eventually could undertake an IPO, he said the market opportunity only continues to increase as more companies move into the cloud.
“The category is huge,” he said “We are focused on continuing to grow the business.”