JumpCloud: Cloud-Based Cybersecurity
Providing secure, frictionless access from any device to any resource
Remote work can make organizations more vulnerable to cyberattacks due to the security risks of an employee’s home (or coffee shop) network. This problem is expected to accelerate in a post-COVID world, with IoT cyberattacks alone forecasted to double by 2025. With the increase in remote work, the importance of low friction cybersecurity for organizations is at an all-time high.
Alumni Ventures portfolio company JumpCloud is helping to address this increase in cyberattacks through a platform that provides users with secure, frictionless access to any resource (database, SaaS system, ERP, etc.) from any device (computer, mobile, tablet), regardless of location. In addition, the company’s open directory platform gives IT, security operations, and DevOps teams a single, cloud-based solution to control and manage employee identities and devices.
JumpCloud offers a Directory-as-a-Service (DaaS) platform to manage secure connections, employees, and IT resources. By combining a SaaS directory with the ubiquity of the cloud, organizations can more easily connect their employees to the IT resources they need and monitor potential security threats.
What We Liked About JumpCloud
Substantial Demand and Market Opportunity: Cybersecurity is a high priority for all organizations due to increased remote work, with the global market expected to grow to $345.4 billion by 2026. The Small and Medium Businesses (SMB) segment has been poorly served historically.
Strong Team: JumpCloud has assembled a highly experienced team. CEO Rajat is an 8x entrepreneur with multiple successful exits (including Net.Genesis IPO at $293 million). CTO Gregory Keller is also an experienced founder with exits such as Excite@Home, acquired by AT&T for $307 million.
Well-Established Lead Investor: JumpCloud’s lead investor is Sapphire Ventures ($6.8 billion AUM), a well-established VC with proven success in this sector and stage with exits such as Auth0 (acquired by Okta for $6.5 billion) and Fitbit (IPO for $4.11 billion). The lead partner on this deal is Jai Das, who sourced Sapphire’s investment in Five9 (acquired by Zoom for $14.7 billion). Jai is also an Investment Committee member of Waterman Ventures.
How We Are Involved
Waterman Ventures (for the Brown community) sponsored Alumni Ventures’ investment in JumpCloud’s $159 million Series F led by Sapphire Ventures. Sibling funds Bascom Ventures (for the Wisconsin community), Congress Avenue Ventures (for the UTexas community), Green D Ventures (for the Dartmouth community), and Triphammer Ventures (for the Cornell community) also participated in the round. Other investors include Owl Rock, Whale Rock Capital, Sands Capital, Endeavor Catalyst, and more.
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Contact [email protected] for additional information. To see additional risk factors and investment considerations, visit av-funds.com/disclosures.