Cloud Directory Service JumpCloud Raises $159 Million in $2.56 Billion Funding Round
Cloud Directory Provider as a Service Jump Cloud Inc. is getting some serious traction, today announcing a $159 million late-stage funding round that follows a $100 million raise in January.
The Series F round was led by Sapphire Ventures and saw participation from Owl Rock, Whale Rock Capital, Sands Capital and Endeavor Catalyst. Existing investors General Atlantic, BlackRock and HIG Growth Partners also participated in the round, bringing JumpCloud’s valuation to $2.56 billion.
JumpCloud aims to simplify directory management for businesses that have multiple user directories or don’t want to bother installing their own. Its directory provides basic identity and access control services, multi-factor authentication, single sign-on, and integration with other popular directories such as Microsoft Corp’s Active Directory. and the neutral Lightweight Directory Access Protocol.
The company sees its service as a modern replacement for Microsoft Corp’s Active Directory service. JumpCloud says it has significant benefitsclaiming that Active Directory was designed and built for an on-premises world dominated by Windows-centric computing environments.
This makes it unsuitable for a modern age where information technology resources are increasingly cloud-based. JumpCloud also competes with cloud access security brokers and federated identity management platforms.
JumpCloud believes it has grown significantly since the COVID-19 pandemic as organizations around the world searched for a better way to manage thousands of remote workers. It provides a single solution that supports heterogeneous apps, devices, and security needs.
The alternative, according to JumpCloud, is to use legacy services like Active Directory and extend them with multiple standalone tools for SSO, MFA, and device management, or skip directory management altogether and work with dozens. individual systems to connect employees to resources. Neither is ideal.
JumpCloud co-founder and chief executive Rajat Bhargava said IT teams have a strategic responsibility to ensure work is done securely and efficiently, regardless of where workers are.
“The pandemic has accelerated their need for an infrastructure platform that isn’t limited by legacy domain-based approaches, or that requires multi-point solutions,” he said. “JumpCloud has reinvented the directory with a comprehensive, modern platform that gives IT admins an easier path to adopting zero-trust security models for more granular access control, with a user-friendly experience.”
The proof is in the pudding, and JumpCloud offers impressive numbers, claiming that it now has nearly 5,000 customers in 100 countries, 1,300 managed software vendor partners, and a 149% net revenue retention rate.
One of the customers cited by the company is new and used car dealership Cars.com LLC. “JumpCloud has helped us bring together all the identity and device management pieces in a way that is much needed during the pandemic,” said Kyle McKenna, head of enterprise technology at Cars.com. “As our business grows, the scalable JumpCloud platform makes it easier for us to manage all of our devices and users, saving us time and resources.”
Over the past year, JumpCloud has significantly beefed up the capabilities of its platform, adding a premium feature called Directory Insights that gives system administrators and security personnel a centralized view of user activity around the access to company resources. Other additions include JumpCloud Protect, an MFA push mobile app capable of verifying user identities via one-touch verification available on iOS and Android devices, and Zero Touch Enrollment for Mac, expanding its device management capabilities .
Casber Wang, vice president of Sapphire Ventures, said JumpCloud has established itself as the IT administrator community’s preferred platform by successfully unifying access to identity, device and infrastructure resources. cloud into one secure platform.