1Password, a 14-year-old password management company, announced a $200 million Series A from Accel, the single largest investment the venture firm ever made.
Based in Toronto, 1Password has been profitable since day one, according to cofounder Dave Teare. However, to capture more market share, the firm decided to take venture money to grow its business, said 1Password CEO Jeff Shiner to TechCrunch.
The company’s password management software stores and autofills login information for internet users. In 2015, the firm expanded its offering from retail to enterprise customers and has since signed up over 50,000 businesses, according to Business Insider.
Although the largest, the $200 million investment is not the first check Accel has ever written to an already profitable company. The venture firm has also invested in late-stage companies such as Atlassian and Qualtrics.
“We are making a serious, serious bet here,” Accel partner Arun Mathew told Business Insider. “We don’t want to burden the company with too much capital, but it’s a problem that is felt by literally everyone. Your mom could be a customer. My mother is a customer. It’s very rare we see a product and solution that’s solving a pain point across literally everyone.”