O’Melveny Represents Splashtop in Reaching US$1 Billion+ Unicorn Level with US$50 Million FundingJanuary 28, 2021
FOR IMMEDIATE RELEASE
SILICON VALLEY—January 28, 2021—O’Melveny advised Splashtop, Inc., an emerging leader in next-generation remote access and remote support, in a US$50 million financing round that pushes the company’s valuation beyond the US$1 billion unicorn level.
The funding was announced on January 27, 2021.
Sapphire Ventures led the financing round, with participation from Storm Ventures, NEA, and DFJ DragonFund.
This funding comes a decade after Splashtop’s previous funding: four rounds that raised a total of US$49 million.
Based in Silicon Valley, Splashtop delivers remote access and remote support software and services to more than 30 million users, including those in 85% of Fortune 500 enterprises, as well as in government and educational institutions.
The O’Melveny team representing Splashtop was led by M&A partner and Silicon Valley Office Head Paul Sieben (who has served as counsel to the company since its inception), counsel Martin Mayo, and associate Amit Itai.
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Splashtop issued the following press release:
SPLASHTOP ANNOUNCES $50M IN NEW FUNDING, ACHIEVING COVETED $1 BILLION VALUATION
Next-generation remote access provider becomes latest tech unicorn while posting notable profitability and customer satisfaction numbers
SAN JOSE, Calif., January 27, 2021—Splashtop Inc., an emerging leader in next-generation remote access and remote support, has closed a $50 million financing round that pushes its valuation beyond the $1 billion unicorn level. Led by existing investor Sapphire Ventures, the latest round also includes participation by other long-time Splashtop investors Storm Ventures, NEA and DFJ DragonFund.
“Our sustained profitability and growth—which accelerated during the COVID-19 pandemic—validate that Splashtop’s modern approach to remote access is making a real difference in how, where and when people can use the digital resources they need to work, learn and be entertained,” said Mark Lee, co-founder, and CEO of Splashtop. “We’re fundraising now at unicorn valuation to amplify our brand and momentum so we can attract talent, expand our enterprise presence, and accelerate our global expansion to delight customers everywhere.”
Splashtop’s $1 Billion Valuation Validates its Performance and Market Vision
Unlike the vast majority of the unicorns that ignore financial losses as they pursue high growth, Splashtop has been profitable since 2015 even while growing rapidly. The company’s current growth rate of 160% and profits of 60% represent exceptional performance levels.
“Splashtop is an example of an efficient and agile enterprise technology company that has demonstrated incredible metrics, including fast growth, impressive customer satisfaction scores and attractive profit margins,” said Jai Das, president and partner of Sapphire Ventures. “We anticipate the adoption of Splashtop to continue to climb. Its secure remote access solution has been essential for businesses of all sizes during the pandemic, and we anticipate will be critical far beyond as where and how people work has been forever reimagined.”
Also fueling Splashtop’s valuation is recognition of the company’s vision for disrupting the established remote access market.
“Splashtop is at the leading edge of a major IT trend: making it easier to access and use necessary software applications and data,” said Ryan Floyd, a founding managing director of Storm Ventures, which has invested in Splashtop since its Series A funding. “Splashtop replaces the clunky, complex, expensive legacy approaches to remote access—exemplified by virtual private networks (VPNs)—with a modern, cloud-native approach that provides secure, easy access to any digital assets, anywhere, at any time.”
COVID-19 Pandemic Accelerates Splashtop’s Business Success
The COVID-19 pandemic—which shut down physical access to corporate and academic computing resources worldwide—drove increased demand and appreciation for Splashtop’s solutions, including among larger enterprises.
In identifying the “Top Trends Impacting Infrastructure and Operations for 2021,” research and advisory firm Gartner Inc. names Trend No. 1 as Anywhere Operations. “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.”*
Over the past year, Splashtop has served 85% of Fortune 500 companies—including Disney, FedEx, GE, Marriott, and Toyota—plus government and educational institutions such as the U.S. Centers for Disease Control and Prevention (CDC), Harvard University, Stanford Healthcare, and a research lab enabling COVID-19 vaccine research by major pharmaceutical companies.
Splashtop Empowers Leading Businesses to Thrive
“Adobe customers—who use our industry-leading Creative Cloud products in broadcast media, graphic design, scientific research, engineering, education, and more—need to remain productive when working remotely, as many have had to do since the start of the pandemic,” said Sue Skidmore, head of partner relations, Adobe Video. “Splashtop’s remote desktop solution has proven to be very valuable to many video content creators who can run Adobe applications on any device as if they were sitting in front of the high-performance work computers.”
“As we’ve seen with the global pandemic, remote access is crucial to the success of any business and we are pleased to be partnered with Splashtop. Their reliability, performance, and customer support have been exceptional in providing us, our customers and employees the necessary tools to keep important work moving forward, even remotely,” said Joel Nichols, vice president of Information Systems at Quanterix, a biomarker analysis company that is enabling new insights into the biology of health and disease. “Our revolutionary technology is helping researchers around the world advance the science of precision medicine.”
Also during 2020, Splashtop expanded its global reach, including new partnerships in EMEA, South America, and Asia. In Europe, the company opened an EMEA headquarters in Amsterdam and expanded its Euro currency and local multilingual support. In Asia, the company opened an APAC channel headquarters in Singapore supporting hundreds of revenue-generating channel partners and built enterprise channels in multiple countries, including Japan.
The Splashtop blog provides more details about Splashtop’s path to unicorn status, and a related press release, also issued today, recounts some of the company’s 2020 milestones. The newest funding comes a decade after Splashtop’s previous funding: four rounds that raised a total of $49 million.
*Gartner Press Release, Gartner Identifies the Top Trends Impacting Infrastructure and Operations for 2021
Based in Silicon Valley, Splashtop Inc. delivers next-generation remote access and remote support software and services for enterprises, academic and research institutions, government agencies, small businesses, MSPs, IT departments, and individuals. Splashtop’s cloud-based, secure, and easily managed remote access approach is increasingly replacing legacy approaches such as virtual private networks (VPNs), while earning a stunning 93 Net Promoter Score (NPS), a standard for assessing customer satisfaction. More than 30 million users, including those in 85% of Fortune 500 enterprises, enjoy Splashtop products globally. Visit www.splashtop.com for more information.