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1Password bags $100m funding at a $2 billion valuation as businesses learn passwords matter

Yosemite 1Password on MacBook Pro
Yosemite 1Password on MacBook Pro (Image credit: iMore)

What you need to know

  • Password company 1Password has reportedly picked up a $100 million investment and is valued at $2 billion.
  • The company is experiencing huge growth thanks in part to businesses needing to secure users as they work from home.

Popular password management company 1Password has reportedly received a $100 million investment via an Accel-led round of funding at a $2 billion valuation. The news comes as the company continues to experience huge growth in the business sector, thanks in part to companies realizing that they need to secure their users as they work from home.

As reported by VentureBeat, 1Password has been expanding its portfolio rapidly after making its name as the go-to app for Mac users who wanted to keep all of their passwords safe behind a single Master Password. It's now much more than that, with a focus on business customers helping it reach annual recurring revenue of $120 million.

1Password CEO Jeff Shiner says that 1Password's success is thanks in part to companies having to deal with people working from home — and the security challenges that presents.

"Businesses — both large and small — were forced overnight to adopt a remote way of working," Shiner told VentureBeat. "That switch meant that companies, most of whom were used to a centralized office, suddenly needed to support employees using their own devices, at home on their own potentially insecure networks. With the remote-hybrid shift came a proliferation of SaaS tools to help keep people and teams productive. Many of these tools are brought in to help specific teams solve specific problems, which means that across an organization, there can be hundreds of different software products — all requiring unique logins and access."

1Password has long been one of the best password managers for Mac users, but it's the move into business password and secret management that has opened the door to a whole new — and massive — revenue stream for the company.

It isn't just the Mac where 1Password excels, either. It's one of the best iPhone apps for people who don't want to rely on Apple's iCloud Keychain, too.

It's great to see a company like 1Password doing so well — a company that's always been popular among the Apple community and offers free accounts for journalists (opens in new tab) to help keep them safe when doing their work.

Oliver Haslam
Oliver Haslam

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too.

Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.