16 votes

1Password has raised $200 million from Accel

13 comments

  1. [2]
    balooga
    Link
    I've been a 1Password user for 12 years. I love the company's approach toward privacy and security; they're one of a small few tech companies that has completely won my trust. I don't know how...

    I've been a 1Password user for 12 years. I love the company's approach toward privacy and security; they're one of a small few tech companies that has completely won my trust.

    I don't know how this funding will change the company, if at all, but I hope the impact on the product is minimal. I'm happy with the software as it exists today. Not looking to add a bunch of whiz-bang features or gimmicks. "Do one thing, and do it well" is a great mantra. Now that there's money on the table I'm nervous the company may try to grow the user base by adding a bunch of useless nonsense.

    10 votes
    1. suspended
      Link Parent
      Personally, I prefer Bitwarden over all the password managers.

      Personally, I prefer Bitwarden over all the password managers.

      9 votes
  2. [9]
    JXM
    Link
    My first reaction is, "Why does a password manager need $200 million?" I have racked my brain and I can't think of any good reason.

    My first reaction is, "Why does a password manager need $200 million?"

    I have racked my brain and I can't think of any good reason.

    8 votes
    1. [8]
      Deimos
      (edited )
      Link Parent
      The likely reason is that the founders and/or other people with equity in the company wanted a way to cash out without needing to go public or be fully acquired. Edit: this article about it on The...

      The likely reason is that the founders and/or other people with equity in the company wanted a way to cash out without needing to go public or be fully acquired.

      Edit: this article about it on The Globe and Mail includes:

      At least one-third of the funds are going into the company and the balance to the founders, with the new investors getting a minority stake.

      So it sounds like the company is probably getting more like ~$70M, while the founders take over $100M of it.

      12 votes
      1. [7]
        JXM
        Link Parent
        I see numbers like this all the time. How the hell is a password manager worth any of those numbers?!

        I see numbers like this all the time. How the hell is a password manager worth any of those numbers?!

        5 votes
        1. Deimos
          Link Parent
          They say they have millions of users, who should generally be paying at least $3/month each, as well as over 50,000 business customers, and business accounts start at $8/month/user (unclear if...

          They say they have millions of users, who should generally be paying at least $3/month each, as well as over 50,000 business customers, and business accounts start at $8/month/user (unclear if this is total users or 50,000 different organizations with multiple users). So that's probably already somewhere in the range of $5M/month of consistent monthly revenue, and will probably only continue increasing as long as they don't screw anything up horribly.

          I don't know if that makes for a ~$500M valuation yet, but that's definitely a very valuable business regardless of what the product is.

          8 votes
        2. [5]
          onyxleopard
          Link Parent
          Because the software is impeccable. Any given password manager may not be worth a lot, but 1Password is a really, really good software/service for managing information securely and sharing it with...

          Because the software is impeccable. Any given password manager may not be worth a lot, but 1Password is a really, really good software/service for managing information securely and sharing it with select people/teams across devices. The fact that so many people were willing to move from their pay-once model to a subscription model is indication that what they are selling is worth a lot to a large population.

          6 votes
          1. [4]
            JXM
            Link Parent
            I've been using 1Password since around 2010 and I'm one of the people who is happily paying for the monthly subscription fee (their family plan is fantastic and saved my parent's butts more than...

            I've been using 1Password since around 2010 and I'm one of the people who is happily paying for the monthly subscription fee (their family plan is fantastic and saved my parent's butts more than once). I absolutely get that they have loyal customers. But even if they are the biggest password manager in the world, they're still just a password manager.

            Impeccable software doesn't equal a $500 million valuation. Especially when there are so many other options for password managers that can easily steal away customers. A lot of customers did switch to the subscription model, but from what I've seen a lot of those customers did not.

            4 votes
            1. [3]
              onyxleopard
              Link Parent
              1Password is one product/service. I’d imagine a software house like Agile Bits will continue to develop more products eventually. If those are as high quality as 1Password, I don’t think it’s...

              1Password is one product/service. I’d imagine a software house like Agile Bits will continue to develop more products eventually. If those are as high quality as 1Password, I don’t think it’s unreasonable to value the company that highly. The value of a software company is not just its code and install base—it’s the software engineers and managers, the company culture, and other talent. That all said, I think one could argue that company valuations are quite tricky and there is no objective way to do it. If venture capital backs them with so many dollars, well, they convinced someone to part with that money. So, they’re worth that much to someone. Just because you wouldn’t spend your money that way if you had it doesn’t mean that it’s incorrect.

              3 votes
              1. [2]
                JXM
                Link Parent
                You're right. But my point isn't that I don't think it's worth that. It's that I don't see how it's worth that much.

                Just because you wouldn’t spend your money that way if you had it doesn’t mean that it’s incorrect.

                You're right. But my point isn't that I don't think it's worth that. It's that I don't see how it's worth that much.

                2 votes
                1. onyxleopard
                  Link Parent
                  Well, what’s a small software house with top tier talent and a proven successful product worth?

                  Well, what’s a small software house with top tier talent and a proven successful product worth?

  3. emdash
    Link
    Not to plug anything; but if you're looking for a password manager that doesn't result in a monthly subscription or store data on their own servers, check out EnPass. One off payments for the...

    Not to plug anything; but if you're looking for a password manager that doesn't result in a monthly subscription or store data on their own servers, check out EnPass. One off payments for the mobile & desktop platforms and you're set for good—and you can sync over the cloud of your choice too. As I use iCloud, my data never leaves Apple's servers.

    5 votes
  4. tomf
    Link
    I had no idea 1P was 14 years old. It's surprising how amateur their software was when I was using it a few years ago. Due to their lackluster UI and absent Linux support, I wrongly assumed they...

    I had no idea 1P was 14 years old. It's surprising how amateur their software was when I was using it a few years ago. Due to their lackluster UI and absent Linux support, I wrongly assumed they were a new startup.

    I used 1P for a few years, but ultimately left because of the lack of Linux support. When Bitwarden came out, it didn't take a lot for me to move over.

    4 votes