1Password, a popular password managing platform, has just been valued at $6.8 billion after the company had closed a massive $620 million during its Series C funding round.
Robert Downey Jr., Ryan Reynolds, and Justin Timberlake Invest
According to the story by TechCrunch, this investment was led by Iconiq Growth and came with participation from Lightspeed Venture Partners, Tiger Global, BAckbone Angels, and Accel, which reportedly led the company's previous $200 million Series A funding as well as $100 million Series B rounds.
Other investors that are participating include CrowdStrike CEO George Kurtz, LinkedIn chairman Jeff Weiner, and General Motors CEO Mary Barry. The round also attracted Robert Downey Jr., Ryan Reynolds, and Justin Timberlake's investment.
1Password Grew from 90,000 to Otver 100,000 Paying Customers
The bumper funding round is following quite a stellar year of growth for 1Password. The company gave a statement to TechCrunch noting that since its Series B raise back in July 2021, it was able to increase its paying customer base from 90,000 to over 100,000.
The company was also able to add some big-name corporate subscribers to the list, including Intercom, Datadog, and Snowflake. To add, the company has grown its internal headcount to 570 employees from a previous 475.
1Password Attributes Burn Out as Major Security Concern
This particular growth has been driven by three things, as per the company, namely the continuation of remote and hybrid working, the acceleration of work-related burnout, and the rapid adoption of cloud apps.
The acceleration of work-related burnout is now a worrying security threat. 1Password found out that 80% of office workers and 84% of security specialists feel burned out due to the pandemic.
What the Company Plans to Do with Its Funds
Jeff Shiner, the company's CEO, gave a statement to TechCrunch noting that the company found that stress and burnout can lead to potential compromises, especially when it comes to security.
The company will reportedly be using its newly-raised funds in order to drive continued growth. With that, the company is planning to triple its engineering and customer support teams to build out its business-focused Events API functionality capable of providing visibility into success and failed sign-in attempts and finance additional acquisitions.
1Password CEO Announces No Plans for Exit Just Yet
As per Shiner, the company is looking at strategic acquisitions, and in 2021, they have made an acquisition with Secret Hub and will be continuing to look at different acquisitions and how they can help users achieve their mission and goals.
Despite the Series C funding round providing 1Password with a lot of money when it comes to capital, Shiner noted that the company currently has no plans for an exit "just yet." To add, Shiner said that the funding would give the sleep-at-night ability to go after some of the big bets that the company needs to take.
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Written by Urian B.
