1Password Founders Sell $75M Stake in $100M Secondary Sale, Valuing Company at $6.8B

1Password founders recently sold a $75 million stake as part of a larger $100 million secondary sale, valuing the company at $6.8 billion. This valuation matches the one set during their $620 million Series C funding round in January 2022. The $75 million stake was acquired by the Halo Fund, founded earlier this year by Utah Jazz owner Ryan Smith and Accel partner Ryan Sweeney. Other investors, including Flume Ventures, also participated in the secondary sale by buying stakes from the founders. Despite the sale, the company's valuation remained steady at $6.8 billion, consistent with the last primary funding round.

This secondary sale provided liquidity options for the founders and long-tenured employees, while 1Password continues to plan for a future public offering. The company has shown strong growth with an estimated annual recurring revenue of $265 million in 2023, up 33% year-over-year from $200 million in 2022. With total funding raised of approximately $920 million across three rounds, 1Password is a leading subscription SaaS company offering both consumer and business products. Its business tier launched in 2018 targets enterprises with secure password and secrets management, now expanded to a 50,000+ paying business customer base.

1Password's valuation at 34 times its revenue as of the 2022 funding round reflects the strong market demand for cloud-based identity and security management tools, especially amid rising remote and hybrid work trends. The company’s innovation in secrets delivery automation aims to compete with other major players in the identity management space such as Okta and HashiCorp, helping maintain its position in the growing market for enterprise cloud security solutions.bloomberg+2​