My1login said on Wednesday that it has closed $1.6 million in its second round of seed funding. Investors included the Scottish Investment Bank, the investment division of Scottish Enterprise. Based in the UK, My1login is a provider of cloud solutions.
(PRWEB) June 26, 2013
my1login, the UK’s first cloud based password manager, announced today the completion of its second funding round, taking total seed investment in the online password manager to $1.6 million. With $500K raised during its first round in 2012, this latest investment prepares the way for a Series A Round expected to start in 2014.
The consortium of investors includes the Scottish Investment Bank, the investment arm of Scottish Enterprise, which has matched the angel investment of TRI Capital and Equity Gap. A number of individual business angels also invested during the latest round.
TRI Cap chairman Rob Dick comments: “Members of the syndicate have been very impressed with my1login’s technical and market knowledge in a challenging sector. We are looking forward to developing our relationship with the team at my1login, during what should be an exciting period for the company.”
Jock Millican of Equity Gap continues: ‘Equity Gap invested in my1login because the company is addressing a serious problem for businesses and individuals which has real market potential. The founder – Mike Newman -has a clear vision and drive which was also a key factor in our investment.’
Kerry Sharp, head of the Scottish Investment Bank, added: “It’s ventures like these that we’re here to support. This is an innovative and forward-thinking company that has shown a clear commitment to growth and we look forward to continuing to work with and support it as it develops.”
Having built credibility and traction in the consumer market during its first 12 months, the new investment will enable my1login to target the rapidly growing business security market.
Internet security is one of the key risks facing businesses today with LinkedIn, Dropbox and Yahoo! all falling victim to high-profile password hacks and both the BBC and Associated Press having their Twitter accounts compromised in recent weeks. Recent figures from Verizon show that 40% of security breaches are a result of hackers guessing, cracking or re-using passwords and 25% of breaches are caused by phishing. my1login’s solution tackles both issues directly.
my1login is designed to prevent the use of weak passwords and weak password practices, where employees use the same password across multiple websites, and also to protect businesses against serious financial and reputational damage resulting from a hacking incident. The company soft-launched its free business service last month and is already seeing significant levels of signups and traffic to its site.
Mike Newman, my1login CEO explains: “my1login protects businesses of all sizes from the growing threat of online crime by providing a password management solution that allows businesses to manage and securely share passwords with colleagues and teams . This investment marks an important milestone for us and will allow us to increase our growth rate significantly.”
my1login has developed the service in response to growing demand for an alternative to traditional single sign-on (SSO) solutions which are prohibitively expensive, can take months to deploy and are difficult to integrate because of the need for third parties to opt in.
Suitable for businesses of all sizes, and free-to-use for small businesses, my1login is available at a monthly subscription cost of just $2 USD per user for larger companies.
Launched in 2012 as a free consumer product, my1login has now released a business password management solution, suitable for businesses of any size.
my1login solves the problem of securely remembering, managing and sharing business passwords for teams and colleagues. It works in conjunction with existing business passwords, allowing employees to access business web sites with just one login. Since employees no longer have to remember passwords, they can all be made strong and unique, increasing business security.
Unlike traditional single sign-on solutions, my1login is cloud-based and can be set-up across an organisation within five minutes as it needs no integration or application interfaces with a business’s existing IT and software systems.
my1login helps a business reduce corporate risk by increasing password security, while minimising downtime and improving productivity through less password resets and forgotten logins.
Notes to the Editor
my1login uses complex, multi-layered encryption processes so that not even my1login employees can access users’ data. Business accounts are protected using two-step authentication (password and key phrase) making its default level of security the most secure of any password manager. Business passwords are encrypted client-side using 256 bit AES, then further encrypted using 256 bit SSL before being sent to my1login for storage. 1024 bit RSA public/private key cryptography further encrypts AES keys to enable secure sharing and central distribution of specific passwords where required.
A business user’s key phrase encrypts access to their business passwords using AES 256. It’s impossible for anyone to decrypt and access that stored password data without the key phrase, and it would take the most advanced computers millions of years to try out every possible permutation of a reasonable length phrase.
my1login’s datacentres operate within an ISO27001 accredited secure environment.
my1login software also offers extras such as password security reports and a password generator that creates super-strong passwords for businesses improving their online security.
About the Scottish Investment Bank
The Scottish Investment Bank is a division of Scottish Enterprise operating Scotland-wide in partnership with Highlands and Islands Enterprise. It manages a suite of funds including the Scottish Seed Fund; the Scottish Co-investment Fund and the Scottish Venture Fund, which are partly funded by the European Regional Development Fund (ERDF); the Scottish Plastics Loan Fund and the Renewable Energy Investment Fund. SIB is also the cornerstone investor in the privately-managed Scottish Loan Fund and an investor in Rock Spring Venture’s Life Sciences Fund. These support Scotland’s SME funding market to ensure businesses with growth and export potential have adequate access to capital. SIB also provides a team of financial readiness specialists to help companies prepare for new investment and more easily access finance.