Electric, maker of IT infrastructure software for SMBs, raises a $90M Series D led by GGV, says it has 700 customers, 40K end users, 111% ARR growth this year
Electric, the IT infrastructure software for SMBs, has been on a tear lately. The company is today announcing the close of a $90 million Series D financing round.
Context & Ripple Effects
Electric is scaling fast through the SMB IT stack: the company that started as a chat-based IT support service in 2019 now lets one admin manage devices, subscriptions, and permissions from the cloud, and its $40M Series C earlier this year preceded this $90M round by only months. GGV leading again is notable — the firm also led the 2019 Series B, so this is a repeat backer doubling down rather than a new bet.
First-order effects
- Electric gets roughly $130M in new capital within a year of its Series C, funding a push beyond 700 customers and 40,000 end users at 111% ARR growth.
- GGV deepens an existing position, keeping board-level influence over a portfolio company it has backed since 2019.
Second-order effects
- SMB-focused IT vendors like Datto, which raised $75M in 2015 for backup and recovery, now face a rival bundling device management, software subscriptions, and security into one platform — pressuring point solutions to broaden or get absorbed.
- Managed service providers serving small businesses compete against software that lets a single admin do the work in-house, squeezing the pricing of outsourced IT support.
Third-order effects
- With one in three SMBs reporting a breach last year, security pressure is pushing small businesses from ad hoc IT toward consolidated cloud-managed platforms, concentrating the SMB IT market around a few vendors.
- If repeat-led mega-rounds keep funding SMB infrastructure startups, the category consolidates the way enterprise IT did — fewer, larger platforms replacing fragmented tools.
The trend: SMB IT is consolidating from fragmented tools and outsourced support into venture-funded cloud platforms, with repeat investors like GGV accelerating the pace.