Open source password manager Bitwarden raises $100 million

Open source password manager Bitwarden raises $100 million
Open source password manager Bitwarden raises $100 million

Bitwarden has raised $100 million in an investment round. With the extra money, the open source password manager wants to keep the company competitive.

The investments are necessary to ensure the growth of the company and to compete with 1Password and other providers. For the Californian company, it is the first (official) capital injection since the start-up in 2015. The investment round was led in the right direction by PSG, not the football team, but of course the organization that helps software companies with growth through capital increases. Battery Ventures, which supports young companies and management teams, is also joining the dance.

Free and Paying Services

Like its competitors, Bitwarden makes it easy for customers to generate strong passwords and store them in a secure digital vault. The password manager offers free and paid versions. With the free service, users get limited password storage across different platforms. This is mainly fine for individuals who want to manage their passwords securely.

For companies, Bitwarden has more extensive, and therefore also paid services. These include applications such as the Single Sing-on (SSO) and identity management. The big difference with many competitors is that Bitwarden is based on open source code. As a result, companies and security passionate users can easily inspect the code and even provide feedback.

Trust of PSG and Battery Ventures

Bitwarden is making the capital injection to face the growing market and stiff competition. Confidence in the open source password manager is high among the investors. “Our investment in Bitwarden reflects our confidence that the password manager market is poised for significant growth. This is partly due to the increase in online accounts and the growing security concerns due to hybrid work environments,” PSG director Tom Reardon said in a press release.

With the extra money, Bitwarden plans investments and new products such as secrets management, something that competitor 1Password already applied last year. “The timing for the investment is perfect as we are now growing strongly. This provides additional opportunities for developers, password-free technologies and authentication. And more importantly, we are committed to serving our users for a long time to come,” said Bitwarden CEO Michael Crandell.

The article is in Dutch

Tags: Open source password manager Bitwarden raises million

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