Toronto startup 1Password secures $265 million in funding

Nov 14 2019, 9:53 am

After 14 years of strong organic growth and profitability, Toronto-based startup 1Password is taking on its first outside investment worth $200 million USD (approximately $265 million CAD).

1Password, which is dubbed as the world’s most loved password manager, announced the Series A funding on Thursday, which was led by Accel and joined by Slack Fund, Atlassian executives, and other notable investors.

According to the company, the funding will allow it to scale its Enterprise Password Manager (EPM) globally by “aggressively” investing in product and go-to-market programs to expand its enterprise footprint and enable any company to secure identities and sensitive data.

“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,” said Jeff Shiner, 1Password’s CEO.

“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,” said Shiner.

1Password creates and remembers complex passwords for users, making it the most secure solution as well as the easiest to use.

According to the company, 1Passowrd helps users create unique, strong passwords, and auto-fills logins for any site or app with a click, so they can get more done without remembering — or even knowing — their credentials.

The company also uses ‘secure vaults’ to provide users with a safe place to share files and data too sensitive for email, while its reporting and management tools give IT visibility into breaches and compromised accounts.

“Our Enterprise Password Manager removes the frustration employees feel with forgotten passwords while securing employees and protecting their companies,” Shiner added.

The company said it has 50,000 paying business customers across diverse industries, including 25% of the Fortune 100 companies, using its Enterprise Password Manager.

“Since the start, we’ve been committed to creating a terrific experience, not monetizing eyeballs or tracking users,” said Dave Teare, 1Password co-founder.

“We’ve built a passionate customer base by respecting privacy, listening to feedback and making a security product that people love to use. That’s created a virtuous cycle where customer feedback keeps us ahead of the game by highlighting the latest services users want, from Face ID to Slack integrations to the next big platform.”