Toronto-based password manager 1Password raised a US$620 million round, the largest by a Canadian company.
- 1Password helps everyday people develop and keep track of strong passwords, charging $2.99 a month to store them in a secure virtual “vault.”
- In 2015, the company launched its B2B operations, which now account for 60% of 1Password’s revenue.
What happened: Led by tech-focused investment firm ICONIQ Growth, the round raised the company’s valuation to $6.8 billion, up by 3x since its last round of financing in July of last year. Celebrity investors also got into the mix: including Vancouver-born Ryan Reynolds, Scarlett Johansson and Robert Downey Jr.
- 1Password’s paying customer base has grown by 10,000 in the last six months, adding big-name corporate clients including Snowflake to their customer list. The company has also hired 95 more employees, bringing the total headcount to 570.
How passwords = $:The shift to remote work during the pandemic, an accelerated adoption of cloud-based apps, and burnout leaves workers reusing passwords, posed significant cybersecurity risks for companies.
What’s next: 1Passwordwill use the fresh funding to grow its workforce from 570 to over 1,000 to compete on the world stage.The global password management market is expected to grow to US$2.05 billion by 2025.