Seattle-based passwordless authentication startup, SecureW2, has recently announced its successful fundraising round, securing $80 million in funding from Insight Partners. This marks the company’s first-ever funding round and demonstrates the growing demand for passwordless authentication solutions in the enterprise sector.
Key Takeaway
SecureW2, the passwordless authentication startup, has secured $80 million in funding from Insight Partners. The investment reflects the increasing demand for passwordless authentication solutions in the enterprise sector. SecureW2 offers a cloud-native, user-friendly platform that simplifies the deployment and maintenance of passwordless infrastructure. With plans to expand market presence and innovate in adjacent product categories, SecureW2 aims to drive adoption and provide cost-competitive solutions to enhance security and user experience.
Promoting a More Secure Approach to Authentication
Passwordless authentication presents numerous advantages compared to traditional passwords, such as increased security and reduced risk of breaches. Studies have shown that compromised passwords account for approximately 81% of all security breaches, and individuals often reuse passwords up to 14 times, leaving their digital footprint vulnerable to hackers. Despite its enhanced security, passwordless technology faces adoption barriers, particularly in the enterprise sector. A Harris Poll study indicates that as of 2021, 48% of companies have yet to implement passwordless authentication due to perceived skill and team limitations.
SecureW2 Simplifies Deployment and Maintenance
SecureW2 addresses these barriers by providing a user-friendly, cloud-native solution that abstracts away the complexities of deploying and maintaining passwordless authentication infrastructure. Insight Partners’ principal, Max Wolff, highlights SecureW2’s momentum in attracting customers as a key factor in the investment decision. The platform already boasts a global customer base of hundreds, catering to organizations searching for alternatives to traditional passwords for securing network and application access.
A Fresh Approach to Passwordless Authentication
Originally an open-source project, SecureW2 was founded in response to the increasing threat of password-based attacks and the inadequacy of existing enterprise passwordless authentication solutions. The company’s founders, Tom Rixom and Bert Kashyap, recognized the need for a simple, software-as-a-service-based approach for IT teams. SecureW2 now offers a comprehensive suite of passwordless technologies, including a certificate issuance tool to replace passwords and authorize access to Wi-Fi, ethernet, and VPN networks. Its platform supports various operating systems and integrates with cloud identity environments like Okta, enabling policy-based security across an organization’s ecosystem.
Expanding Market Presence and Innovation
With nearly 1,000 customers and millions of users, SecureW2 has operated as a self-funded and profitable company, generating free cash flow. The recent funding round aims to support its go-to-market efforts, expand software development and research and development (R&D) efforts in adjacent product categories. SecureW2 plans to leverage machine learning capabilities to enhance device connectivity analysis, security anomaly detection, and capacity planning. As the need for passwordless authentication continues to grow, SecureW2 aims to provide cost-effective and straightforward solutions to drive adoption and industry growth.
