1Password Secures $620M Series C Funding, Valued at $6.8B

1Password Secures $620 Million in Series C Funding

1Password, a leading password management platform, has successfully completed a substantial $620 million Series C funding round. This investment significantly elevates the company’s valuation to $6.8 billion.

Investment Details

Iconiq Growth spearheaded the investment, with notable participation from firms including Tiger Global, Lightspeed Venture Partners, Backbone Angels, and Accel. Accel previously led 1Password’s Series A ($200 million) and Series B ($100 million) funding rounds.

The round also garnered interest from prominent individual investors. These include George Kurtz, CEO of CrowdStrike; Mary Barra, CEO of General Motors; and Jeff Weiner, chairman of LinkedIn. Celebrities such as Ryan Reynolds, Robert Downey Jr., and Justin Timberlake also contributed to the funding.

Growth and Expansion

This significant funding follows a period of considerable growth for 1Password. Since its Series B raise in July of the previous year, the company has expanded its paying business customer base.

• The customer base has grown from 90,000 to over 100,000.
• Key corporate clients added include Datadog, Intercom, and Snowflake.
• Internal staffing levels have increased from 475 to 570 employees.

1Password attributes this expansion to several key factors. These include the ongoing shift towards remote and hybrid work models, the increasing adoption of cloud-based applications, and a rise in work-related burnout.

Cybersecurity Implications of Burnout

The company’s research indicates that employee burnout is emerging as a critical cybersecurity vulnerability. A recent study revealed that 80% of office workers and 84% of security professionals are experiencing burnout due to the pandemic.

Consequently, 12% of workers are resorting to using the same password, or a limited set of passwords, across all work-related accounts. This practice significantly increases security risks.

CEO Insights

Jeff Shiner, CEO of 1Password, explained the connection between stress and security practices. “When individuals are stressed and burned out, they prioritize convenience over security,” he stated. “Overworked employees are more likely to compromise on security measures.”

Shiner also noted the impact of the “Great Resignation.” “The desire for change, exemplified by the Great Resignation, introduces security challenges. Departing employees may inadvertently take access to company applications and services with them, without proper IT oversight.”

Future Plans

1Password intends to utilize the new funding to accelerate its growth trajectory. Specific plans include:

• Tripling the size of its engineering and customer support teams.
• Enhancing its business-focused Events API, providing greater visibility into sign-in attempts.
• Pursuing strategic acquisitions to further its mission.

“We are actively evaluating potential acquisitions,” Shiner confirmed. “The acquisition of Secret Hub last year demonstrated the value of this strategy, and we will continue to explore opportunities.”

Long-Term Vision

Despite the substantial capital infusion, 1Password has no immediate plans for an exit. Shiner emphasized that the funding will provide the company with the financial flexibility to pursue ambitious long-term goals.

“This funding provides us with the resources to confidently invest in significant opportunities that will drive our future success,” Shiner concluded.