Silicon Valley-based Splashtop raises €41.3M; here’s how this new US unicorn plans to conquer Europe from Amsterdam

Picture Credit: Splashtop

Yearly, increasingly entrepreneurs appear to recognise Amsterdam’s potential as a hub for innovation. The thriving startup ecosystem of Amsterdam has attracted many worldwide startups to arrange their European headquarters within the metropolis. 

Silicon Valley-based Splashtop lately joined the listing of worldwide startups that chose Amsterdam as their European HQs. The startup additionally introduced at present that it has closed a $50M (practically €41.3m)financing spherical that pushes its valuation past the $1B (approx €0.83B) unicorn stage. The spherical was led by current investor Sapphire Ventures, with participation by different long-time Splashtop traders Storm Ventures, NEA and DFJ DragonFund.

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“The most recent funding comes a decade after Splashtop’s earlier funding: 4 rounds that raised a complete of $49M (approx €40.4M),” says the corporate in a press launch. 

Making a Splash amid COVID

Splashtop claims to be an rising chief in next-generation distant entry and distant assist. It delivers distant entry and distant assist software program and providers for enterprises, tutorial and analysis establishments, authorities companies, small companies, MSPs, IT departments and people.

In keeping with the corporate, “the COVID-19 pandemic—which shut down bodily entry to company and tutorial computing sources worldwide—drove elevated demand and appreciation for Splashtop’s options, together with amongst bigger enterprises.”

“Our sustained profitability and development—which accelerated in the course of the COVID-19 pandemic—validate that Splashtop’s fashionable strategy to distant entry is making an actual distinction in how, the place and when folks can use the digital sources they should work, be taught and be entertained,” says Mark Lee, co-founder, and CEO of Splashtop. 

“We’re fundraising now at unicorn valuation to amplify our model and momentum so we will entice expertise, develop our enterprise presence, and speed up our world growth to thrill clients in all places,” he provides.

Validating Valuation

Splashtop’s unicorn standing is validated by the truth that it has been worthwhile since 2015 even whereas rising quickly. It claims that its present development fee of 160 per cent and earnings of 60 per cent symbolize distinctive efficiency ranges.

“Additionally fueling Splashtop’s valuation is recognition of the corporate’s imaginative and prescient for disrupting the established distant entry market,” says the corporate. 

“Within the funding world, the Rule of 40 is a technique to consider the funding prospects of software program firms. If the sum of income development and revenue margin equals or exceeds 40, the corporate is deemed a doubtlessly wholesome funding,” Lee mentions in an official weblog publish. 

“Splashtop has a development fee of 160 per cent and earnings of 60 per cent—for a complete of 220. That’s greater than 5X the Rule of 40! And we’ve been worthwhile since 2015, so this isn’t some flash-in-the-pan current improvement. Reaching a Rule of 200+ actually units us aside amongst firms reaching unicorn standing. We’re proud that we’ve pursued this path, as a result of it bodes effectively for our long-term enterprise well being,” he avers. 

The ripples attain Europe

In 2020, Splashtop opened its EMEA headquarters in Amsterdam and expanded its Euro foreign money and native multilingual assist.

In an unique dialog with Silicon Canals, Alexander Draaijer, basic supervisor EMEA of Splashtop, shares the explanation behind selecting Amsterdam as its EMEA HQs. “Splashtop has picked Amsterdam as a result of reality it’s been acknowledged because the European capital of innovation whereas the Netherlands is being perceived because the west coast of Europe. Beginning our European HQ in Amsterdam, we will entice loads of multilingual expertise that permits us to hit our development targets, however extra importantly to assist our clients of their native language,” he says. 

“Clearly, Amsterdam is well accessible to folks all over the world and permits us to simply journey effectively when wanted,” he provides.

In keeping with the corporate, it has recruited 7 folks in its first 12 months of it European presence and plans to rent extra as soon as it opens its model new workplace on the Piet Heinkade in Amsterdam on the first of February 2021.

“This 12 months, we wish to develop over 200 per cent. Meaning we wish to rent roughly 10 folks within the first quarter of this 12 months with roles various from buyer success, gross sales, assist, and advertising and marketing, to channel managers, so we will assist and allow key companions throughout our EMEA markets that may assist us scale. I wouldn’t be stunned if we’d end 2021 with 30 folks in our new workplace,” Draaijer says. 

In 2020, It additionally achieved SOC 2/SOC three safety auditing compliance and have become able to adjust to Europe’s Basic Information Safety Rules (GDPR).

Buyer-centricity

Draaijer tells Silicon Canals that customer-centricity is an enormous a part of Splashtop’s tradition. As an example the customer-centric angle, Draaijer says Splashtop even gave away free licenses to maintain struggling companies afloat, in areas hit hardest by the worldwide pandemic. 

Just lately, Splashtop launched quantity reductions to assist the distant working effort and to assist enterprise continuity in these difficult occasions. 

“One person prices € 90,- a 12 months. We provide a 20 per cent low cost for any person over 4, 45 per cent low cost for any person over 10, and 50 per cent for any person over 50. And we don’t take away the low cost when folks renew their subscriptions – that is for all times,” he provides.

In keeping with him, though Splashtop is comparatively new to Amsterdam and Europe, it already managed to draw a robust portfolio of shoppers, with about one thousand paying clients within the Netherlands alone, together with NEP Hilversum, healthcare centres like Het Slingeland Ziekenhuis, academic establishments like Leiden College of Utilized Sciences and a bunch of Managed Service Suppliers. 

“Instructional establishments in Europe and Africa are very a lot our goal. We lately signed up many giant revolutionary academic establishments just like the Royal School of Artwork in London and the College of Westminster, each within the UK, but in addition the IED European Institute of Design in Italy, the Robert Schumann College in Germany and plenty of extra.”

Africa and the Center-East to observe

In keeping with Draaijer, after specializing in the European market from the Amsterdam headquarters, Splashtop will set its give attention to Africa and the Center-East. Throughout 2020, Splashtop expanded its world attain, together with new partnerships in EMEA, South America, and Asia.