For 2021, ElectroNeek reports an outstanding increase in new customer growth and annual recurring revenue, as well as R&D and team expansions. ElectroNeek's MSP customers also set new standards of growth by selling automation services by subscription to end clients, making ultra-fast 5x+ ROI within 6-12 months.
Growth and Acceleration
ElectroNeek reports hypergrowth in 2021
For 2021, ElectroNeek has achieved more than 8x growth in revenue from selling hyperautomation products to Managed Service Providers (MSPs), while the whole revenue was 3x for all company's products. Laser-sharp focus on the IT Services market segment, a robust lineup of hyperautomation software products, and Go-To-Market support for MSP customers allowed ElectroNeek to deliver outstanding value to our core audience of technology MSPs. This resulted in the increase of ACV from ~$9k in 2020 to ~$16k for 2021, and targeting ~$30k for 2022.
Having extensive background experience and a deep understanding of MSPs' needs, ElectroNeek's team reduced the sales cycle to less than 60 days. This is unusual for the Robotic Process Automation (RPA) industry with a 9-12+ months average sales cycle. Our customer base growth of 432% allowed us to onboard many new MSPs that are now poised for their own hypergrowth. ElectroNeek customers range from small intelligent automation boutiques to big service providers such as Xerox, HLB, Ricoh, and Applied Imaging. Their success, as measured by the rapid growth of automation services revenue, comes from delivering hyperautomation to end clients that are starving for business process automation.
Fast business expansion throughout 2021 laid the foundation for global domination of the MSP market segment. ElectroNeek successfully launched two new regions: Latin America and India+APAC. Since launching, ElectroNeek has won many MSP customers in these two regions, with next-gen automation solutions for their end clients. EMEA becomes the next frontier for business expansion in 2022.
"We've reached an inflection point in the IT Service Provider market, and fully validated our belief that hyperautomation services will enable these businesses to dramatically increase their annual recurring revenue.
Our entire ElectroNeek team has worked hard to achieve these results; in 2022, we'll build on this momentum, continuing to expand our team, launch into new global regions, and further develop our ecosystem of innovative products hand-in-hand with our global MSP partnership ecosystem.
The global IT Services community is eager to seize the massive business opportunity in the rapidly-growing automation services ecosystem. ElectroNeek will continue to support this effort with new product offerings that go even further beyond RPA. With insights gleaned from our partner community, we will continue to refine our product roadmap, with new releases throughout 2022 that are dedicated to helping our existing partners extend their footprints in the hyperautomation services domain.
We'll continue the rapid expansion of our partner ecosystem to create value for 500,000 potential partners worldwide. While Hyperautomation capabilities have historically only been available to the large enterprises, ElectroNeek is now enabling companies of all sizes to realize the dramatic benefits afforded by this technology."
Sergey Yudovskiy, Co-founder & CEO, ElectroNeek
ElectroNeek's investments in its Global Partner Success Program allowed it to create a systematic approach and processes to speed up Go-to-Market success for its customers. This strategy, focused on MSP-centric support, allowed ElectroNeek to drive significant growth inside its existing customer base, elevating Net Revenue Retention (NRR) to 121% and targeting 150% NRR in 2022.
Since shifting to providing Hyperautomation solutions and business support to MSPs in Q4 2020, ElectroNeek placed a significant focus on aiding partners not just with innovative RPA tools and partner success initiatives, but with tangible business opportunities in the form of lead generation. Further investment into providing lead generation for partners is a vital piece of ElectroNeek's evolving partner success program and business model as a whole. Since the launch of its Global Partner Success Program, ElectroNeek has distributed more than 3,000 leads to partners globally, for an average of 12 leads per month per partner.
Bots by Subscription
With the rise of the subscription economy, many ElectroNeek MSP customers offer their clients Automation-as-a-Service on a recurring payment basis. Their RPA bots, built with ElectroNeek no-code products, are the software solutions that they offer to customers by subscription. With low or even no upfront investment needed from the end-user side, MSPs are accelerating their own sales cycle and their customers' digital transformation initiatives. Such ElectroNeek partners, on average, experience a 50% higher growth rate of their automation revenue base and unlock opportunities for financing historically available only for SaaS companies - venture capital. In 2021, ElectroNeek customers raised seed venture capital on an average $3M valuation, expanding their teams and accelerating their own revenue growth with ElectroNeek products.
Products and R&D
In 2021, Electroneek increased R&D investments by 300% and opened the LatAm engineering hub in addition to the Eastern-Europe hub.
In Winter Release '21, ElectroNeek presented a new product, Team Lead, which was designed specifically to foster the growth and success of MSPs. At the very core of the Team Lead lies an automated lead distribution system that allows partners to tap into the flow of incoming leads, select prospects to target based on mutual fit, and control the progress of each lead processed during the sales cycle.
To support subscription bot licensing models that power the growth of many ElectroNeek partners, we introduced the Bot Protection feature. This enables customers to encrypt the automation workflows so they can not be modified by unauthorized third parties. Now, IT Service Providers can protect their intellectual property (IP), which allows them to comfortably enter long-term subscription-for-automation relationships with new clients.
ElectroNeek's team has grown dramatically and converted a post-YC team of 30 to a success-focused organization with more than 175 people, targeting more than 300 people globally in 2022. Heavily investing in people as our greatest asset, ElectroNeek hired the best professionals from the market from such companies as UiPath, Automation Anywhere, ConnectWise, Kaseya, Abbyy, and more.
Since its inception, ElectroNeek has been backed by top US venture capital investors, including Y Combinator. In 2021 ElectroNeek closed a $20m series A funding round with a growth fund focused on US IPO for European startups – BVCP, with the record of more than 5 IPOs on Nasdaq.
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