NS1, a global company with a software-defined application networking stack modernizing DNS, DHCP, and IPAM, has raised a $40 million Series D venture round led by Energy Impact Partners (EIP) with participation from existing investors. This brings NS1’s total funding to $125 million.
The new funding for NS1 would support the company’s continued innovation and development of modern foundational technologies.
“There is heightened urgency to expedite IT modernization. Five-year projects are being condensed to one year, and the only way to deliver on these aggressive timelines is by unlocking leverage in foundational application and networking infrastructure,” said Kris Beevers, co-founder and CEO of NS1. “This additional investment at a time of rapid growth at NS1 helps us capitalize on the market opportunity to meet the escalating demand for the modern foundational technologies used by every business, enabling them to quickly adapt to changing environments, more effectively control costs, and deliver reliable, secure, and exceptional user experiences.”
Past investments from Cisco and Dell Technologies Capital created opportunities to extend NS1’s market reach and magnify the company’s distribution channel. This new funding round represents a significant increase in valuation for the company. It will allow NS1 to more aggressively invest in product innovation and expand the company’s engineering capacity so it can continue to develop “market-leading solutions that power the connected economy.”
LinkedIn, Dropbox, Salesforce, VMware
NS1 started 2020 with a rapid influx of new customers. In the first quarter, new customer bookings grew 159% year over year. The company now serves more than 600 enterprise customers, including many of the largest brands and most trafficked applications, such as LinkedIn, Dropbox, Salesforce, The Guardian, TomTom, Pitney Bowes, and VMware.
“The hyper-connectivity of today’s world has made IT transformation a business imperative. Meeting this demand depends on reliable IT operations and trusted technology partnerships,” said Bask Iyer, chief information officer (CIO) and chief digital transformation officer, VMware. “Working with NS1 to implement its Managed DNS has helped us build a resilient, more secure and high performing network that improves customer experience, IT efficiency, and application reliability.”
Demand for NS1’s foundational technologies would continue to accelerate, according to NS1, as more organizations are modernizing application and access networking stacks in order to address the continued pressure to support new approaches to work and customer engagement.
Energy Impact Partners (EIP)
Shawn Cherian, partner at EIP, will join NS1’s Board of Directors as part of the funding round. Cherian said that EIP’s investment in NS1 represents a growing appetite from the firm’s limited partners to integrate with category-leading companies and invest in enterprise SaaS solutions. He cited NS1’s role in meeting connectivity requirements generated by the rapidly increasing number of connected devices as a primary area of growth.
“As enterprises shift to the cloud and their environments become more complex, fundamental infrastructure solutions, like those provided by NS1, will play a critical role in allowing companies to expand more effectively,” said Shawn Cherian. “NS1 is the leading next-generation DNS platform and has defined the standard for performance, resilience, and scale, which will continue to have broad applicability for internet services and solutions across verticals.”
Energy Impact Partners (EIP) is a global investment platform with over $1.5 billion in assets under management. EIP invests globally across venture, growth, credit and infrastructure. It has a team of more than 45 professionals based in its offices in New York, San Francisco, Palm Beach, London, UK, and Cologne, Germany.