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closed a $40 million Series C as the New York-based company looks to be the IT department for companies too small to have their own.

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The round was led by , with participation from Electric鈥檚 existing investors including , , and . The company has raised more than $100 million since being founded in late 2016.

Electric raised the new cash after more than doubling in revenue and headcount last year, said founder and CEO .

鈥淲e had a great year,鈥� he said. 鈥淪o we figured we would go out at the top of the year and raise money so after that we could just get back to business.鈥�

An obvious problem

The company solves an obvious problem 鈥� providing IT services and support to small and mid-sized businesses that normally have no or very small IT departments. The company鈥檚 SaaS platform provides software that helps automate many services, as well as a full support desk.

Denehy said about 80 percent of Electric鈥檚 nearly 500 customers have no IT staff, even as most companies are using four times the amount of applications from just four years ago.

鈥淭his is a hard problem to solve,鈥� said Jeff Richards, managing partner at GGV Capital. 鈥淭he complexity of most IT departments is 100x what it was just 10 years ago.鈥�

It is estimated the SMB market spends more than $100 billion on IT annually, said Richards.

鈥淭here are not many markets as big as this,鈥� he said. 鈥淎nd it’s only growing.鈥�

Comparables

Richards said he looks at Electric similar to two public market comparables 鈥� and . Jamf creates software to help manage Apple software and has a market cap of more than $4.6 billion. RingCentral helps SMBs manage their telecommunications and has a market cap of more than $36 billion.

The RingCentral comparison is especially valid, as it solved an obvious need for smaller businesses, said Richards, who regrets not investing in that company years ago when provided the chance.

Electric may offer atonement.

鈥淭his is my chance to make it up,鈥� Richards laughed.

Illustration: .