Duo Security Raises $70 Million at More Than $1 Billion Valuation

Duo Security, a cloud-based provider of identity and access management solutions, today announced that it has raised an additional $70 million in funding led by Meritech Capital Partners and Lead Edge Capital.

The Series D funding round brings the total amount raised by the Ann Arbor, Michigan-based software-as-a-service (SaaS) company to $119 million, with a post-money valuation pegged at $1.17 billion. 

According to the company, the additional cash will be used to expand global operations and fund product development.

Duo says that it currently serves more than 10,000 customers and protects more than 300 million logins worldwide every month. Customers include Facebook, Etsy, Facebook, K-Swiss, Paramount Pictures, Toyota, Random House, Yelp, Zillow and more.

Through its flagship two-factor authentication (2FA) app, Duo’s “Trusted Access” product suite helps verify the identity of users, and the health of their devices, before granting them access to applications. The platform supports Macs, PCs and mobile devices, and gives administrators visibility into end user devices accessing the corporate network.

In term of company performance, Duo says it has doubled its annual recurring revenue for the past four years, and currently has more than 500 employees globally, after doubling its headcount in 2016.

In late September, Duo issued a research report showing discrepancy between the frequency and thoroughness of Apple’s Mac Operating System (OS X) and app security updates, and updates for the underlying firmware (EFI) on Mac computers. Duo’s research found that on a sample of 73,324 Macs deployed in production settings, 4.2% were running outdated EFI — leaving them potentially vulnerable to new exploits.

In addition to its Ann Arbor, Michigan headquarters, Duo currently maintains offices in Austin, Texas; San Mateo, California; and London, England.

The Series D round included new investors, Geodesic Capital and Index Ventures, as well as existing investors Redpoint Ventures and True Ventures. Workday, a new strategic partner, also participated in the round.  Other investors in the company include, Benchmark, Google Ventures,  Lead Edge Capital, Meritech Capital Partners, Radar Partners.