1Password Raises $200M for War Chest
Emailed on November 15th, 2019 in The Friday Forward
1Password, a Toronto-based password manager, announced this week it has raised $200 million in a massive Series A funding round that was led by Accel.
In 2019 that's almost not even news, but this fundraise is a bit different.
The financing marks the previously bootstrapped 1Password’s first external round of funding in its 14-year history. It's massively profitable, has a great product, and appears to grow at a very strong rate. It also represents Accel’s largest single check written in one round.
So why did 1Password raise $200M? According to 1Password, they plan to use the new capital to “aggressively” invest in its product and go-to-market programs so that it can continue to grow its enterprise customer base.
But if you look a little closer, you'll find that 1Password competitor, Dashlane, raised $110M back in May. So you have to assume 1Password is preparing for war.
And THAT, ladies and gentleman, is where great products go to die. It's a tale as old as time:
