Password Management Platform 1Password Raises $100 Million As Business Booms

Toronto password management platform 1Password has raised $100 million in an Accel-led round of funding at a $2 billion valuation.

A slew of new institutional and angel investors joined Accel, including Ashton Kutcher’s Sound Ventures, Kim Jackson’s Skip Capital, Slack CEO Stewart Butterfield, Shopify CEO Tobias Lutke, Squarespace CEO Anthony Caselana, and Eventbrite cofounder Kevin Hartz.

The raise comes hot on the heels of a slew of product announcements, including its expansion into secrets management to help enterprises secure their infrastructure; a new API that enables security teams to funnel 1Password sign-in data directly into cybersecurity tools such as Splunk; and a new Linux desktop app aimed at DevOps teams.

This is the second external round of financing for the under-the-radar, bootstrapped company that you most likely didn’t know was Canadian.

1Password raised a $200 million Series A funding round in 2019 and in the nearly two years since, the company has almost doubled its number of paying business customers to 90,000, and hit $120 million in annual recurring revenue (ARR).

Founded in 2005, 1Password was born out of a recognized need – the struggle of keeping up with passwords.

Unlike other tech startups, 1Password didn’t worry about impressing early employees with an amazing office. They did exactly the opposite and encouraged employees to work remotely, allowing them to choose the location, environment, schedule, and approach that works best.

While the COVID-19 pandemic has made this flexible work environment more and more common, 1Password was a trailblazer.