November 30, 2019
Toronto-based password manager company 1Password has raised US$200 million in its first round of institutional funding. This is the first time the company has raised outside funding in its 14 year history. The password management software creates and stores complex passwords for users, who can auto-fill their credentials on various platforms. Users only need to remember one master password to access all of their login credentials.
The financing was led by US-based venture capital firm Accel, which has previously invested in companies such as Facebook, Spotify, Venmo, and Canada’s Hootsuite Media. 1Password originally marketed its products to single users, but has gained over 50,000 corporate and government customers since offering its enterprise option in early 2016. As reported by BetaKit, 1Password has grown its business-to-business revenue by over 300% in the past two years. Accel partner Arun Mathew said he was impressed with 1Password because unlike many fast-growing software companies, 1Password has been “extremely profitable since day one”.
The financing is part of a growing trend of Canadian technology companies raising hundreds of millions of dollars in single rounds, such as Montreal-based Coveo, Newfoundand-based Verafin, and British Columbia-based Clio.
Author: Ida Mahmoudi