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In Its First Funding in 14 Years, 1Password Raises $200M Series A

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Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#351

Post by signal11 »

UncleMeat wrote: post #244
jonathankoren wrote: post #229

Earlier quoted context omitted.

That’s why you create a free Dropbox account or just use your free iCloud account. This is even what 1Password used to recommend as part of its setup, if I remember correctly. I’d it was simply storage, the. It would be an add on, but it’s not. It seems like it’s more of a strategy to increase cash flow by converting to ongoing subscriptions instead of one time purchases. This is the same motivation that switched MS…

Man you aren't thinking deep enough. Just set up your own FTP server! The truth is that my grandmother needs a password manager and she barely understands what minimizing a window does. "Just store your vault in dropbox" is friction and that matters much more to the huge majority of users than the fact that the vault is stored on a cloud service.

> Dropbox... is friction

Yes, completely agree. Dropbox sync has lots of gotchas and edge cases, and was particularly bad if you edited files on multiple systems (my workstation and laptop, for instance -- I use both interchangeably depending on what I'm doing).

I can understand why 1Password built their own sync service instead of playing whack-a-mole with different cloud storage providers' quirks.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#352

Post by Arubis »

scarface74 wrote: post #298
Arubis wrote: post #294

Earlier quoted context omitted.

It doesn't really matter if 1P is dominant across the whole market. It matters a lot if it's dominant across the part of the market that's willing to pay actual cash money for password management.

How did that work out for DropBox? Google and/or Microsoft could announce tomorrow that they are either giving the same functionality away or bundling with their Office product.

It worked out well enough for them to get an exit. DBX is unexciting, but it’s not a penny stock.

And Google and Microsoft do exactly that already.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#353

Post by AGKyle »

Marsymars wrote: post #302
hk__2 wrote: post #285

Earlier quoted context omitted.

How did you do that? I can’t find a way to pay 1Password in € rather than $. Every year my bank is stealing^W taking a fee because 1Password is billing in USD.

I went through 1password.ca, 1password.eu seems to direct to pricing page with € pricing.

Fair warning: I work for 1Password

These also have another distinct change beyond simply pricing, they're actually hosted in those regions. So .ca is hosted in Canada and .eu is hosted in the European Union.

Kyle

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#354

Post by tripzilch »

ghshephard wrote: post #31

This isn't really a typical Venture funding, and is definitely not a "Series A". Traditionally, at this point, 1Password would probably have just gone Public, without any need for venture funding. But, why go to the hassle of doing that when you can get most of the same benefits ($$$) without any of the pain (public reporting, SOX, etc...). The VCs at this point would be happy with a 3-4x return, because the risk is…

> there is one product that has completely nailed it

yes that's Keepass, cause it's open source and you keep control of your password database instead of on somebody else's server.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#355

Post by nixgeek »

agwa wrote: post #260
ghshephard wrote: post #31

This isn't really a typical Venture funding, and is definitely not a "Series A". Traditionally, at this point, 1Password would probably have just gone Public, without any need for venture funding. But, why go to the hassle of doing that when you can get most of the same benefits ($$$) without any of the pain (public reporting, SOX, etc...). The VCs at this point would be happy with a 3-4x return, because the risk is…

> As a personal user, I consider 1Password the GitHub of password management Ah, GitHub. The company which was bootstrapped and profitable like 1Password, but then took venture capital, became unprofitable, and had to sell to Microsoft. Let's hope they aren't the GitHub of password management.

Where has this story been publicly discussed? What’s the origin of this rumor that GitHub “had to sell” due to financial stability concerns?

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#356

Post by nixgeek »

scarface74 wrote: post #283
ghshephard wrote: post #31

This isn't really a typical Venture funding, and is definitely not a "Series A". Traditionally, at this point, 1Password would probably have just gone Public, without any need for venture funding. But, why go to the hassle of doing that when you can get most of the same benefits ($$$) without any of the pain (public reporting, SOX, etc...). The VCs at this point would be happy with a 3-4x return, because the risk is…

Even if 1Password is dominant, it’s really in the bubble to think that most people use 1Password. Users are generally happy with their passwords syncing through Google or Apple. The YC darling DropBox still isn’t profitable and probably never will be as they are becoming “just a feature”. 1Password will doubtfully never be profitable enough to be worth $3.2 billion. Whether they can pawn themselves off to the public…

They’re selling Teams at $4/mo per user and I guess if they go after enterprise we’ll see additional tiers with features aimed specifically at that.

It doesn’t take too many deals with huge companies who need cross-platform to get to $200-300 million, and “worth” $3.2bn. Multiples from revenue have been a little interesting lately.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#357

Post by jsutton »

greggman2 wrote: post #185
jliptzin wrote: post #50

Earlier quoted context omitted.

I haven’t tried 1password, I have been using LastPass, would you recommend I switch?

yes! go read LastPass's privacy policy. They spy on everything you do and share it with anyone and everyone.

This is outright false, no basis in fact whatsoever.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#358

Post by jsutton »

AdmiralAsshat wrote: post #264
scott_s wrote: post #47

Am I the only one who considers this a good thing? I recently started using 1Password, and I love it. I finally jumped in because a colleague gave it glowing praise and my company gave us corporate accounts. After using it for a week through my company account, I created a separate personal account for myself. I happily pay a monthly subscription because it is a service I benefit from daily. It also lets me neatly ma…

Well, as anecdotal data, LastPass got acquired by LogMeIn a few years ago, and since that time, it has introduced practically no new features, yet the yearly membership price has risen from $12/yr to $36/yr. That's what happens when the scrappy young company with a valuable product gets acquired. Research and Development stops, Rent-Seeking skyrockets. Every time.

That's not actually what happened here, not to say rent-seeking won't happen in the future. R&D stopped well before acquisition, and since acquisition the main focus has been making the product scalable, reliable, and expanding to business users.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#359

Post by gcarvalho »

pertymcpert wrote: post #317

Can someone explain what 1Password gives that iCloud Keychain doesn’t? Is it just the cross platform thing? Because I use iPhone and Mac and iCloud Keychain works really well, I don’t even think about it.

Access to your passwords outside of iOS / macOS.

Re: In Its First Funding in 14 Years, 1Password Raises $200M Series A

#360

Post by AdmiralAsshat »

jsutton wrote: post #358
AdmiralAsshat wrote: post #264

Earlier quoted context omitted.

Well, as anecdotal data, LastPass got acquired by LogMeIn a few years ago, and since that time, it has introduced practically no new features, yet the yearly membership price has risen from $12/yr to $36/yr. That's what happens when the scrappy young company with a valuable product gets acquired. Research and Development stops, Rent-Seeking skyrockets. Every time.

That's not actually what happened here, not to say rent-seeking won't happen in the future. R&D stopped well before acquisition, and since acquisition the main focus has been making the product scalable, reliable, and expanding to business users.

I can only assume based on your comments here and on other threads that you work/ed for LastPass, so I appreciate any insight you might lend.

I am still struggling with the idea that a company that was profitable selling licenses for $12/yr needed to then rise to $24/yr and again to $36/yr within the span of two years and somehow not be considered rent-seeking. You said this is to cater to enterprise users, and yet it's not the enterprise users that are bearing the brunt of the price increase. Absent any visibility into company workings, this feels like corporate overlords acquiring a product and declaring, "You are profitable, but our shareholders demand at least XX% profitability, so you need to make more profit, effective immediately."

Please shed whatever light you can on this.

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