On Tuesday, US-Israeli cybersecurity company Transmit Security raised $543 million in an early funding round. The funding round is said to be the biggest Series A funding round ever in the history of funding cybersecurity companies.
The funding round was led by Insight Partners and Genral Atlantic. Other investors include Artisanal Ventures, Vintage, Cyberstats, Geodesic, and SYN ventures. The company’s value rose to $3 billion after the funding round.
Founded in 2014, Transmit Security has grown into a formidable company providing “secure identity experiences that are seamless and enjoyable for you and your users”. The company plans on using the funds raised to fuel its expansion plans as well as bring to life its aim of eradicating the use of passwords and plans on doing this by switching to biometric authentication of apps and websites.
The company announced the funding round via Twitter. “We did it. $543M to rid the world of passwords. We just raised $543M to say a final goodbye to passwords, usernames, failed logins and password resets. The future of authentication is passwordless…”, the tweet read.
“The news is out! We’ve raised a record-breaking $534M in funding. The largest Series A round of funding in cybersecurity history! Big thanks to our investors @insightpartners, @GenralAtlantic, Cyberstats, @GeodesicCap, SYN Ventures, @Vintage_Inv, and Artisanal Ventures!”, another tweet read.
According to Transmit Security, about 55 percent of people stop using a website after they deem the login process as cumbersome and excruciatingly complex. Citing research, the company stated that more than 87 percent of people find themselves locked out from their online account(s) after many failed login attempts.
The company also noted that password breaches happen as a result of weak passwords which is a huge disadvantage added to the cost needed to keep help desks that help in resetting passwords. Co-founder and Chief Executive Officer of Transmit security; Mickey Boodaei said, “by eliminating passwords, businesses can immediately reduce churn and cart abandonment and provide superior security for personal use”.
“With this latest round of funding we can significantly expand our reach to help rid the world of passwords”, he added.