Toronto-Based 1Password Raises $620 Million USD at $6.8 Billion Valuation in Funding Round

1Password, the Toronto-headquartered password management app, says it has raised $620 million USD at a $6.8 billion valuation, making it one of Canada’s most valuable tech firms.

Password management platform 1Password aims to continue its strong growth with businesses in 2022 through its new $620 million USD series C funding round, which will help the company to go even deeper around meeting security needs for B2B customers, reports TechCrunch.

The series C round was led by Iconiq Growth and included funding from Tiger Global, Lightspeed Venture Partners, Backbone Angels, and Accel, which had led the company’s previous two rounds.

“By making safe online behavior second nature, 1Password is not only protecting individuals but also the enterprises where they work,” said Will Griffith, a founding partner at ICONIQ Growth, who will join 1Password’s board as part of this investment.

The company’s platform helps customers securely manage passwords and credentials and is used by more than 100,000 businesses — including IBM, Slack and Shopify.

1Password started out as a consumer password management app, but in 2015 it started to build a product for businesses that allows passwords to be securely shared and managed across teams.

The business version of 1Password, which integrates with several other work platforms, was launched in May 2016 and 1Password CEO Jeff Shiner said it is now used by over 100,000 companies including the likes of Slack and IBM.

“We allow the people at the businesses to focus on their task at hand … make it easy for them to get in [and] just forget about the complexity of the security,” Shiner said.

The latest funding round will also enable 1Password to continue an aggressive pace of hiring, the CEO explained. The company now employs 570 people — up from 177 at the beginning of 2020 — and aspires to double its headcount in 2022.