Password management provider 1Password raises $100M for further growth

Password management software provider 1Password announced today that it has raised $100 million in new funding to accelerate the company’s business growth and keep delivering new cybersecurity solutions.

Accel led the Series B round. Also participating in the round were Sound Ventures, Skip Capital and a number of prominent enterprise and consumer technology executives.

Founded in 2005, 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 to remember passwords for each site. It does so while offering a secure vault with AES 256-bit encryption to secure user information.

The company also offers the ability for customers to store files and other sensitive data through secure vaults.

In April, 1Password moved into infrastructure security with a service that helps enterprises protect secrets such as encryption keys. Secrets Automation focuses on “secrets,” small files that organizations’ backend applications use to secure the data they work with. The service provides a centralized interface that allows administrators to maintain their companies’ website security certificates, API tokens and other cybersecurity-related files such as encryption keys in one place.

Other recent product launches include 1Password Events API, an application programming interface that gives security and information technology teams the ability to correlate 1Password events with other data sources to understand how workers are using 1Password. Events in 1Password are logs of successful and failed sign-in attempts. The API brings that data into Security Operations Center and Security Information and Event Management tools. The service offers pre-built integration for Splunk and Elastic.

1Password has also launched a full-featured Linux Desktop Application and integrations with Slack and Rippling that provide access to 1Password to tens of millions of employees.

Since raising $200 million in 2019, 1Password has seen strong growth. The company now has more than 90,000 business customers and has crossed $120 million in annual recurring revenue. Notable customers include International Business Machines Corp., Slack Inc., PagerDuty Inc. and GitLab Inc..

“Over the last year, our personal and professional lives have merged, making passwords even more essential to accessing apps and services we love — and need — to get work done,” Jeff Shiner, chief executive of 1Password, said in a statement.

1Password also said it’s tapping into the expertise of a range of enterprise technology leaders. The list includes previous and new investors in the company.

That list includes Tobias Lutke, CEO of Shopify Inc. and Harley Finkelstein, president of Shopify; Stewart Butterfield, co-founder and CEO of Slack Inc.; Anthony Caselana, founder and CEO of Squarespace Inc.; Mike Cannon-Brookes and Scott Farquhar, Co-CEOs of Atlassian Corporation PLC; Kevin Hartz, co-founder and chairman of Eventbrite Inc.; Jay Parikh, former vice president of engineering at Facebook Inc.; Gerhard Eschelbeck, former chief information security officer at Google LLC; and Robert Vis, founder and CEO of MessageBird B.V.

Including the new funding, 1Password has raised $300 million to date.

Image: 1Password/Chrome Store