Investors continue to pour cash into Canadian password management software vendor 1Password, pushing the company’s valuation to $6.8 billion.
Canadian password management software vendor 1Password has closed a new $620 million funding round that more than triples its most recent $2 billion valuation.
The new financing, which was led by ICONIQ Growth, raised 1Password’s valuation to $6.8 billion, setting a new record for venture-backed Canadian companies.
The Toronto-based company has an interesting history of bootstrapping its way to profitability before raising massive investments to fuel expansion. Last July, 1Password banked $100 million in a round led by Accel. This followed a Series A two years ago that netted the company $200 million in venture capital investments.
The latest cash infusion comes as organizations turn to multi-factor authentication technology to help stave off a surge in ransomware and advanced malware attacks. 1Password sells technology to help enterprise customers manage security problems related to password management.
The technology is a key part of implementing zero-trust principles to secure data and has received a major boost from the U.S. government’s executive order on cybersecurity.
The Executive Order, issued in May last year, mandates that federal agencies immediately adopt multi-factor authentication and encryption for data at rest and in transit, prompting increased spending in the password management category.
“1Password will use this additional capital infusion to develop and scale human-centric security solutions for all, focusing on helping people easily protect their most sensitive data and information while seamlessly integrating between their work and personal lives,” the company said in a statement announcing the new financing.
Over the last 24 months, the company is boasting of significant growth in customers, including the addition of new companies like Datadog, Intercom, PGA, Snowflake, and Wealthsimple to its customer base.
The company, which employs 570 in multiple offices around the world, claims its password management and credentials security platform is deployed at more than 100,000 businesses, including IBM, Slack, Snowflake, Shopify, and Under Armour.