1Password is a Toronto based password management company, and they’ve managed to raise $100,000,000 from various big-tech software entrepreneurs, including the CEOs of our favorite Canuck e-commerce platform. That would be Shopify, before you ask.
Kidding aside, the funding of 1Password was led by Accel, a Silicon Valley venture-capital giant , and it values 1Password, formally known as AgileBits Inc, at a staggering figure: $2 billion, which is twice its valuation from when Accel led a US$200-million funding in late 2019, the first time 1Password had taken outside capital since its founding in 2006.
Basically, this reveals 1Password as a true-blue unicorn, i.e. a tech startup that’s valued at $1 billion or more. Beside Shopify CEOs, famous Hollywood actor Ashton Kutcher’s Sound Ventures and Skip Capital also invested in 1Password.
This deal makes for the 25th nine-figure financing of a private Canadian tech company this year, which is more than double the record set in 2019, as the tech sector benefited greatly from from increased use of online tools during the pandemic, and also from the recent trend of fast-growing, commercially successful startups field unsolicited funding offers.
1Password was founded as a business to build websites by 2 friends, both developers, David Teare and Roustem Karimov respectively. As a side business, they also developed a tool to store information, including passwords, in order to save time by automatically fill forms.
That’s what 1Password actually does, i.e. it automatically creates and stores complex passwords for users so they can auto-fill login credentials across websites and platforms, so users will only have to remember a master-password to unlock all their stuff.
1Password started selling its software to individuals first, then to corporate and government customers, as they started protecting not only passwords but more complex things like tokens, keys and certificates that guard confidential information underpinning their corporate digital infrastructure.
Five Shopify executives are invested in 1Password: CEO Tobi Lutke; president Harley Finkelstein; product vice-presidents Satish Kanwar and Brandon Chu; and Matt O’Leary, head of technology partnerships. Shopify, which invests in e-commerce-specific service providers, did not participate.