The Toronto-based company 1Password announced a raise of $100 million in a Series B round of funding. The company valuation has now doubled and amounts to $2 billion as per 200msawersventurebeat. 1Password is one of the very few companies that are profitable and transparent enough to share its financials at the same time.
Founded in the year 2005, 1Password has been profitable since day one and recently crossed the $120 million mark in ARR (annual recurring revenue). According to CEO Jeff Shiner, over 90,000 enterprises are using its SaaS platform. The customer base of the company includes big names like Shopify, PGA, IBM, GitLab, Slack, PagerDuty, and many others. The company was initially founded by couples Dave and Sara Teare. It was later joined by Roustem and Natalia Karimov. The idea for this startup came up from the fact that they were growing another company that built websites, and keeping up with the passwords was a real struggle. As a result of it, 1Password evolved as a password management service for businesses. This easy hack for managing passwords took already successful businesses to a new level.
Earlier in 2019, 1Password raised its first round of external capital, which amounted to $200 million. Both rounds of funding were led by Accel which partnered with Arun Mathew to drive his firm’s investment in 1Password in both rounds. As per him, 1Password has a unique company profile, and it is unusual to see it ride all the market tailwinds with fundamentals and metrics. He further added that the investment will allow the entire company to work more aggressively for becoming the market leader.
Ever since the Series A round of funding, 1Password has continued to evolve. The headcount of employees increased from 174 to 475. The company now has a much-needed go-to-market team. The work-from-home shift post-pandemic has increased the demand for its enterprise offering that aims at protecting critical business information. Hence, 1Password is expected to grow even further.