1Password receives 620 million in Series C funding, valuing the company at 6.8 billion

1Password, a password management tool, has raised 620 million in a Series C fundraising round, bringing the company’s worth to 6.8 billion.

Tiger Global, Lightspeed Venture Partners, Backbone Angels, and Accel, which led the company’s 200 million Series A and 100 million Series B rounds, also participated in the investment. CrowdStrike CEO George Kurtz, General Motors CEO Mary Barry, and LinkedIn chairman Jeff Weiner are among the other investors. Ryan Reynolds, Robert Downey Jr., and Justin Timberlake were among the investors in the round.

1Password has had a banner year of growth, culminating in this massive fundraising round. Since its Series B round in July of last year, the firm has expanded its paying client base from 90,000 to more than 100,000, adding big-name corporate customers like Datadog, Intercom, and Snowflake, and doubled its internal workforce from 475 to 570 personnel, according to TechCrunch. The persistence of remote and hybrid working, the growing adoption of cloud applications, and the acceleration of work-related burnout, according to the business, have all contributed to this.

According to the company, the latter point is becoming a particularly concerning cybersecurity threat, with 80 percent of office workers and 84 percent of security specialists feeling burned out as a result of the pandemic, with 12 percent using the same or a few different passwords for everything at work as a result.

“We’ve discovered two things happen when you have stress and burnout,” 1Password CEO Jeff Shiner tells TechCrunch. “For starters, people seek the simplest solution – when you’re overloaded, you’ll put security on the back burner. Stress and burnout have also resulted in a desire to change, as seen by the Great Resignation. This creates security difficulties since you’re now carrying around all those applications and services that IT isn’t aware of.”

1Password wants to use the additional money to increase its technical and customer support teams, expand its business-focused Events API capability that gives insight into successful and unsuccessful sign-in attempts, and finance future acquisitions, according to the firm.

Shiner adds, “We’re looking at strategic purchases.” “We bought Secret Hub last year, and we’ll keep looking at acquisitions to see if they might help us accomplish our vision and objectives.”

Finally, despite the fact that the Series C fundraising round gives 1Password a significant amount of money, Shiner maintains the firm has no intentions to depart “just yet.”

The money will “allow us to sleep at night knowing that we can go after some of the major bets that we need to take,” according to Shiner.