Oshri Moyal, Technical Director, Atera
Gil Pekelman, CEO, Atera
MSP and remote IT management software provider Atera has raised $ 77 million in Series B financing for a valuation of $ 500 million, the company confirmed today. General Atlantic led the round with participation from K1 Investment Management.
Atera’s cloud-based software covers RMM (remote monitoring and management), PSA (professional service automation), helpdesk, reporting and operations management on a single platform. Atera now serves more than 7,000 customers in 90 countries, up from 4,000 customers in February 2020.
Atera did not specify how many of these 7,000 customers are MSPs, or how many terminals are under management. The company had more than one million devices under management as of February 2020.
The Series B round is Atera’s second increase in 2021. The company announced a $ 25 million Series A round led by K1 in February 2021.
Atera Competition & Disruptive MSP Software Pricing Model
In general, Atera competes with three groups of publishers of automation, management and monitoring software:
Disruptive price: Atera and some competitive upstarts have disruptive pricing strategies. Instead of billing MSPs on a per managed node basis, Atera bills on a user per technician model. The result: MSPs running Atera can add more client endpoints to the system without increasing IT software costs. Monthly charges for Atera do not increase unless MSPs add more of their own technicians to the system.
Combat ransomware attacks on MSPs: Many MSPs use Atera as their primary RMM and PSA system. But additional MSPs are now running Atera as a secondary redundant (i.e. emergency) RMM system on selected client systems. The reasoning: If the main MSP RMM platform comes under a ransomware attack, the MSP can quickly switch to Atera and scale the system on all customer endpoints, multiple MSP sources told ChannelE2E.
Some of these sources estimate full migrations to Atera. In the meantime, taking advantage of an Atera user license to run the software as a secondary RMM system gives MSPs an inexpensive way to get to grips with Atera and create RMM redundancies – without forcing a “rip and replace” strategy. overnight on MSP support services. , say the sources.
Atera Series B Financing: Executives and Investor Insights
In a prepared statement on the Series B funding cycle, Atera CEO Gil Pekelman said:
“The global ecosystem has changed and the need for rapid and easy deployment of IT services is more critical than ever to keep businesses running smoothly. To respond to this new reality, we are investing even more in our research, development and innovation efforts to improve and accelerate the product offerings and features our customers need most. We are committed to upgrading our platform both to better serve our customers, but also to provide them with the possibility of seamlessly evolving their commercial and IT management offers, without friction. “
Alex Crisses, General Atlantic
Gary Reiner, General Atlantic
Addition of Alex Crisses, Managing Director, Global Head of New Investment Research and Co-Head of Emerging Growth at General Atlantic:
“Atera has developed a compelling all-in-one platform that delivers immense value to its customers, and we are delighted to support the company at this important point in its growth trajectory. We are excited to be working with a category-defining Israeli company, expanding General Atlantic’s presence in the country’s advanced technology sector and marking our fifth investment in the region. We look forward to partnering with Gil, Oshri (CTO and Co-Founder) and the Atera team to help the company realize its vision.
Concluded Gary Reiner, Operating Partner at General Atlantic:
“Atera is a high-growth company with a suite of technology-driven tools built on a modern and agile architecture, enabling businesses large and small to approach the new world of work intuitively and efficiently. Atera has positioned itself as a unique, frictionless solution that helps transform the traditional role of MSPs and IT teams into proactive and predictive remediation partners.
Investments in the MSP software industry: private equity and venture capital
Investments in the MSP software sector remain stable and strong. Indeed, funding announcements in 2021 and 2020 involved Auvik, Liongard, Scalepad and SuperOps.ai, among others.
The global managed IT services market will reach $ 354.8 billion by 2026, up from $ 242.9 billion in 2021, according to research by MarketsAndMarkets. This is a compound annual growth rate (CAGR) of 7.9% over the forecast period, according to the market research company. In contrast, the MSSP (Managed Security Service Provider) market is approaching 12-15% per year, according to forecasts from MSSP Alert.
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