Password manager Bitwarden raises $100 million

Cybersecurity is vital in the modern world of work, and high-profile government hacks have demonstrated just how costly breaches can be.

Open-source password manager Bitwarden has helped enterprises and individuals protect their applications through the generation of complex passwords. The company offers this as a free service but also has a host of paid features.

Notably, paying Bitwarden customers have access to single sign-on integrations and identity management. Additionally, the company appeals to many because it has an open-source policy that allows clients to inspect how the software is working.

This has been an appealing offering and has now attracted a $100 million minority growth investment led by PSG. There was also participation from existing investor Battery Ventures.

The company has not announced how this investment has impacted its valuation.

What the investment means for Bitwarden

Bitwarden CEO Michael Crandell discussed what the investment meant to him in a press release: “The timing of the investment is ideal, as we expand into opportunities in developer secrets, passwordless technologies, and authentication.

"Most importantly, we aim to continue to serve all Bitwarden users for the long haul.”

Tom Reardon, managing director at PSG added: "Our investment in Bitwarden reflects our conviction that the password management market is poised for considerable growth as online account use grows and security concerns mount in the hybrid working environment.”Tom Reardon, managing director at PSG added: "Our investment in Bitwarden reflects our conviction that the password management market is poised for considerable growth as online account use grows and security concerns mount in the hybrid working environment.”

Reardon also noted the importance of having an open-source platform: “In our view, Bitwarden distinguishes itself among the available alternatives by virtue of its open-source architecture, flexible deployment options, and zero-cost offering which millions of individuals have utilized.

"These unique attributes remain unchanged, and we look forward to helping the team bring this solution and the next generation of password management tools to a broader group of customers.”

Going forward the company has said that it will look to accelerate product development and company growth. Additionally, Bitwarden intends to innovate its product with plans to expand into other "areas of authentication, as well as new and better ways to store, access and share sensitive information securely".

For customers, BItwarden believes this investment shows the company's plans to endure and will enable it to increase resources and give more value to customers.

It looks like a time of huge growth for the security company, and the need for cybersecurity at work shows no signs of stopping.

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