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 pandemic, opening the door to companies like Splashtop that were designed with “remote” in mind. The San Jose, California-based company, which was founded in 2006 as DeviceVM and already claims to be profitable, said 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 No. 1, noting:
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 having hundreds or thousands of people connecting to a corporate network through a VPN can be a drain on IT resources, slow traffic, and even compromise security.
Remote access tools such as Splashtop, which can 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 associated with using VPNs. CISA noted that because VPNs are on 24/7, organizations are less likely to keep the VPN infrastructure current 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 that it uses to monitor traffic patterns or cloud computational resources, issuing an alert if it spots anomalies or suspicious activity.
Lee said companies like Disney, CBS, NBC, and the BBC are also using Splashtop to edit videos via 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 so IT teams can log in and troubleshoot their employees’ machines from afar.
Splashtop offers an enterprise-specific service that 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 support teams can help their end users without having to switch from their help desk tool of choice.
Splashtop had previously raised $46 million, with its last raise coming 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 a dime a dozen in the technology realm these days, Splashtop claims one notable differentiator from many of the companies with billion-dollar-plus valuations — it is profitable, and has been since 2015. It will use this latest cash injection to capitalize on its rapid growth over the past year, which it claims has delivered profit margins of 60%.
Other investors in this round include Storm Ventures, NEA, and DFJ DragonFund.
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