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Seems like a very weird thing for them to do. The article mentions all the things that 1password succeeded in doing on its own: bootstraping themselves, shifte
by simongr3dal 7y ago
Seems like a very weird thing for them to do.
The article mentions all the things that 1password succeeded in doing on its own: bootstraping themselves, shifted their product to focus on subscriptions, even made their product work well with more enterprise-y needs. All while working out pretty well financially.
And now they need capital funding. For what? The quotes in the article seems to say that a developing a go-to-market strategy and hiring a sales team to do telemarketing requires 200M.
- yborg 7y agoThey don't need the money, I assume this is a CEO/founder cash-out. They have an established revenue stream, and have established an enterprise presence, they will be an attractive acquisition target. There's so much VC money floating around that a sure bet like this can attract that kind of money, and who would turn it down? I'm still on the pre-subscription 1Pass and kudos to them that it still works, but like Dropbox this will become an enterprise service that will be too expensive for consumers. The good news is that password managers are now effectively a commodity, like cloud storage, so there are plenty of options.
- thesimon 7y agohttps://www.theglobeandmail.com/business/article-the-secret-is-out-torontos-1password-raises-200-million-led-by-us/ https://www.theglobeandmail.com/business/article-the-secret-... Indeed it seems like only like $70mio go into the company, rest is cashout.
- deweller 7y agoThe money is for the enterprise product. > 1Password plans to use its new capital to “aggressively” invest in its product and go-to-market programs so that it can continue to grow its enterprise customer base
- tim333 7y agoTo let the shareholders cash out maybe? If they get annoying, Bitwarden's not bad https://news.ycombinator.com/item?id=21175332 https://news.ycombinator.com/item?id=21175332
- auslegung 7y ago> Our relationship is a true partnership, not just an influx of cash. We’re not getting ready for an exit. We’re boarding a rocket ship.
- efficax 7y agoDon't know what compensation structure is like at 1pass but suppose you got hired 10 years ago and were offered an equity stake. You've already paid taxes on it but never got any value since a small share of a private company isn't worth anything until a sale or an IPO. A funding round like this can turn that equity into cash for you.