1Password raises $200M, its first-ever external funding
Password manager software provider 1Password has $200 million in new funding today to invest in product and go-to-market programs to expand its enterprise presence globally.
The Series A round, the first time the company formally known as AgileBits Inc. has taken outside funding in its 14-year history, was led by Accel. It included Slack Fund, WndrCo, three Atlassian executives — Jay Simmons, Scott Farquhar and Mike Cannon-Brookes — along with former Google Chief Information Security Officer Gerhard Eschelbeck and several other “notable investors.”
Founded in 2005 and based in Toronto, 1Password offers password management to businesses and consumers. The company’s software allows users to create passwords and auto-fill logins for sites and applications, negating the need for them to remember passwords for each site. It does so while offering a secure vault with AES 256-bit encryption to secure user information.
1Password also offers customers the ability to store files and other sensitive data through secure vaults along with other complementary services.
For businesses, 1Password offers employee password management from a single control panel that allows them to grant and revoke access to share passwords and documents as well as the ability to delegate password management to other employees so that they can manage teams through custom groups and vaults.
“We started 1Password to solve a problem we all feel every day: the hassle of creating and remembering complicated passwords to access the apps we need,” 1Password Chief Executive Officer Jeff Shiner said in a statement. “Companies try to enforce strong password policies with unreasonably complex requirements that people can’t follow or remember. As a result, most of them create schemes to get around these rules by reusing the same password everywhere or adding subtle variations. This puts your employees and businesses at risk.”
the company has suggested the venture capital infusion will not change their roadmap or corporate culture, but instead fund 1PassAdWords, an ad network where brands bid to make their company name a suggested password when users are registering for a new site https://t.co/Nu7hgECsuc
— 🧑🏻💻☕️ (@hunterwalk) November 15, 2019
The company has found a willing audience, with more than 50,000 paying business users. Clients include IBM Corp. Slack Inc., PagerDuty Inc., Dropbox Inc., Gitlab Inc. and F. Hoffmann-La Roche AG. 1Password is regularly rated in the top three consumer password managers in a market expected to grow to $2.05 billion by 2025.
Others in the market have also attracted funding this year. Sequoia Capital led a $110 million round into Dashlane Inc. in May.
The round is not only notable because it’s the first time 1Password has raised external money but, as TechCrunch reported, it’s also the largest single investment Accel has ever made in its 35-year history.
Image: 1Password/Chrome Store
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