1Password Unlocks $620M Round, Reaches $6.8B Valuation

Toronto-based 1Password closed a $620 million Series C that brings the cybersecurity firm’s valuation to $6.8 billion.

The new round was led by ICONIQ Growth, with participation from others including Tiger Global, Lightspeed Venture Partners and Backbone Angels. Accel—which led the company’s Series A and B—also took part in the round, as well as a handful of celebrity investors such as Ryan Reynolds, Scarlett Johansson and Robert Downey Jr.

It marks the largest round raised by a Canadian company.

The company’s platform helps customers securely manage passwords and credentials and is used by more than 100,000 businesses—including IBM, Slack and Shopify. 1Password’s solution is what it calls “human-centric,” protecting individuals so they can focus on getting things done and not security. According to a report last year by Verizon1, 85 percent of all company data breaches involved a human element.

“At our core, we are making it easier for people to stay safe,” said CEO Jeff Shiner.

Changing workforce, changing security

The 16-year-old company has been profitable since being founded, but has seen significant COVID tailwinds the last two years as companies continue to look for ways to protect employees working from home—or home and office—from security breaches, said Shiner. The company has doubled its customer base and grown its team by more than 300 percent—to 570 employees—in that time.

In 2021, the company saw annual recurring revenue north of $150 million, he added.

With the new funding, 1Password has now raised $920 million in funding, and will use the new cash to accelerate product development, grow its team and make strategic acquisitions, Shiner said. While the password management space has several players such as LogMeIn’s LastPass, Shiner said most customer deals feature no competition.

Arun Mathew, a partner at Accel, said the investment in 1Password is driven by a growing need for better authentication solutions, particularly those that prioritize end-user experience.

“As workforces become more distributed and SaaS/cloud services increase in popularity, the need for a solution like 1Password has also grown,” he said. “With over 100,000 enterprise customers and millions of end users on the platform, it’s already a large company, and we’re excited about the company’s potential.”

Cybersecurity, in general, saw a record-breaking year in 2021 with more than $20 billion flooding into the industry. The sector has already realized more than $1 billion invested in the first two-and-a-half weeks alone this year—including the 1Password round—according to Crunchbase data.

Illustration: Dom Guzman

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