Canadian password supervisor 1Password valued at $6.8 billion in new funding spherical


A password signal is seen on a keyboard in Ankara, Turkey on October 26, 2017.

Aytac Unal | Anadolu Company | Getty Pictures

1Password, the Toronto-headquartered password administration app, says it has raised $620 million at a $6.8 billion valuation, making it one among Canada’s most beneficial tech corporations.

Remembering and defending passwords has change into more and more necessary for people and the businesses they work for lately, with the typical particular person now having dozens of various passwords for numerous apps and accounts. Lots of them are required to include a mixture of letters, numbers and symbols.

Jeff Shiner, CEO of 1Password, informed CNBC that the corporate is making an attempt to ease the strain between safety and comfort. “People weren’t constructed for safety,” he stated. “We make it easy for folks to remain protected on-line.”

1Password began out as a client password administration app, however in 2015 it began to construct a product for companies that permits passwords to be securely shared and managed throughout groups.

The enterprise model of 1Password, which integrates with a number of different work platforms, was launched in Could 2016 and Shiner stated it’s now utilized by over 100,000 corporations together with the likes of Slack and IBM.

“We enable the folks on the companies to concentrate on their process at hand … make it straightforward for them to get in [and] simply overlook in regards to the complexity of the safety,” Siner stated.

Development story

On the finish of 2019, 1Password raised a $200 million sequence A spherical led by Fb and Spotify investor Accel Companions. It raised a $100 million sequence B spherical in July 2021 at a $2 billion valuation.

Revenues for 2021 are anticipated to come back in at round $150 million, Shiner stated, including that companies now account for about 60% of 1Password’s income.

Corporations are charged from $7.99 per person per thirty days, whereas 1Password’s client clients pay $2.99 a month for entry to the product. The corporate stated it has a number of million client clients but it surely declined to specify the precise quantity.

The sequence C funding spherical – one of many largest safety funding rounds ever – was led by Iconiq Development, whereas Lightspeed Ventures, Tiger World and Accel additionally participated. Traders obtained round 9% of 1Password’s shares in trade for the capital.

The 16-year-old firm, which competes with the likes of LastPass and NordPass, stated it plans to make use of the funding to enhance its merchandise and rent extra employees.

Since 2020, 1Password has gone from having 177 staff to round 570 at present.

“We plan to double the scale of our group once more this yr,” Shiner stated, including that the corporate is in search of potential acquisitions.

The hybrid workforce

John Curtius, a associate at Tiger World, stated that his agency likes 1Password as it’s seizing a serious market.

“Blurred traces between work and residential, the explosion of cloud apps and surging threats have made defending our digital lives extra necessary than ever,” Curtius stated in a press release.

He added: “1Password stands out with its monitor document of scaling world-class options constructed across the largest threat and alternative: people.”

Advances in biometrics lately have allowed folks to make use of their faces and finger prints as an alternative of complicated passwords to entry apps and gadgets. However Shiner stated our distinctive options aren’t essentially as safe as encrypted passwords.

“If anyone ever acquired a duplicate of your fingerprint or your face, you’ll be able to’t change that,” he stated.

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