Toronto’s 1Password Raises $125 Million CAD at $2.5 Billion Valuation

Canadian password management platform 1Password has raised $125 million CAD in a round of funding at a $2.5 billion valuation.

The $125 million CAD round was led by Accel, with participation from new investors including Ashton Kutcher’s Sound Ventures, Kim Jackson’s Skip Capital and a number of prominent enterprise and consumer technology executives from Shopify and Slack, explains a new blog post from the company.

As a profitable company, 1Password was not actively looking for new investment, however, the funds and expertise of new partners will be used to continue to accelerate the company’s business growth and to continue delivering cybersecurity solutions to keep businesses and families safe online.

1Password’s angel investors are also some of its biggest customers, including Shopify and Slack. 1Password has grown from 50,000 customers in 2019 to 90,000 now, pulling in $120 million in ARR. The startup’s customers also include major names like IBM, Wealthsimple, PGA, Under Armour, Intercom, and GitLab.

“Over the last year, our personal and professional lives have merged, making passwords even more essential to accessing apps and services we love — and need — to get work done,” Jeff Shiner, chief executive of 1Password, said in a statement.

Founded in 2005, 1Password offers password management to businesses and consumers. The company’s software allows users to create passwords and auto-fill logins for sites and applications, negating the need to remember passwords for each site. It does so while offering a secure vault with AES 256-bit encryption to secure user information.