Toronto's 1Password plans to target enterprise market after closing US$200M financing round
The developers of Canadian security and privacy app 1Password announced a new US$100 million investment round, boosting the company's valuation to US$2 billion.
1Password was developed by Toronto-based Agile Bits Inc, but does business under the 1Password banner. Its software creates secure online "vaults" to keep passwords and other sensitive information safe, touting 90,000 business customers since it was founded in 2005. It generates revenue at an annualized rate of US$120 million, the company said.
This latest financing round, its first since 2019, was led by previous investor Accel and joined by new investors that includes Ashton Kutcher’s Sound Ventures, Shopify Inc.'s Chief Executive Officer Tobias Lutke, and Slack Co-Founder and CEO Stewart Butterfield. Both Slack and Shopify are existing 1Password customers.
“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,” said Jeff Shiner, chief executive officer of 1Password, in a release.
“This investment from a range of industry luminaries signals a commitment to protecting businesses and families. We’re already working closely with our experienced investors to accelerate growth into new areas, including secrets management, as we help customers stay ahead of the never-ending parade of threats.”
Over the past few months 1Password has expanded its product offerings and plans to use funds and investor relationships from this financing round to fuel business growth.