(Bloomberg) -- The valuation of Monday.com, an Israeli startup that makes software to help employees work remotely, jumped to $2.7 billion, according to people familiar with the matter, managing a 42% increase since it last raised money even as many startups confront down rounds.
The Tel Aviv-based company’s worth jumped when some of its existing backers cut their stakes in a secondary share sale, said the people, who asked not to be identified because the terms were private. Monday.com was valued at $1.9 billion at its most recent funding round last year.
Representatives for closely held Monday.com declined to comment on the new valuation.
The company’s products are gaining increasing popularity with customers seeking ways to manage employees who have had to work from home due to the pandemic, Eran Zinman, Monday.com’s co-founder and chief technology officer, said in an interview on Thursday. The disruptions caused by remote working have boosted the importance of finding tools to help keep tabs on assignments and avoid communication breakdowns, he said.
“We’re solving the same problems we used to solve, only now they’ve gotten more acute when working from home,” said Roy Mann, Monday.com’s co-founder and chief executive officer.
The growth linked to the coronavirus pandemic has “accelerated” plans to double the company’s work force by the end of the year to 720 employees, Mann said. Founded in 2014, Monday.com has raised $234.1 million from investors such as Hamilton Lane, Sapphire Ventures and Entree Capital.
The pandemic hasn’t been as helpful to other companies that are trying to raise money and shore up balance sheets. Rent The Runway Inc. is nearing a funding round that would value the company below its previous $1 billion valuation, people familiar with the matter said. Samsara Networks Inc., a startup serving the logistics industry, saw its valuation shrink by almost $1 billion to $5.4 billion in a new funding round. And corporate-housing startup Zeus Living Inc., which is backed by Airbnb Inc., raised money at roughly half the valuation it commanded five months ago.
Read more: Rent the Runway Said to Near Funding Below Last $1 Billion Value
Monday.com has about 100,000 paying customers in 160 countries, Mann said. Companies that facilitate distributed workplaces, such as Zoom Video Communications Inc., have seen their valuations surge since Covid-19 infections erupted in Europe and the U.S., sending countless workers to shelter at home.
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