Cybersecurity Startup HYPR Raises $35 Million to Build Passwordless Authentication Technology
By Thomas Price
Tuesday, 20 April 2021
With cybersecurity becoming a massive concern as more consumers look to embrace modern technology, the need for proper protection for hackers has continued to grow. However, with password sharing among companies on shared workspaces growing as well, the possibility of phishing or hacking has risen significantly. HYPR is a tech startup that has created a passwordless authentication service that increases overall security while maintaining ease of access for users. The company recently raised Series C funding in order to further expand business operations and continue to scale up its technology.
How HYPR Works and Ongoing Success
Tech startup HYPR increases cybersecurity for individuals and business owners through its multi-factor authentication technology. By eliminating the need to log in through a password every time, users can use the HYPR app to automatically unlock the account in question while the company ensures account protection. As a result, users can log in 300% faster than normal while also eliminating the chance for phishing which can compromise business or personal accounts. While the HYPR app is recommended, the startup also has an app-less version of their security solution.
The cybersecurity company has seen a major increase in overall business as the 99% reduction in account takeover fraud has shown to be a massively attractive benefit to the service. Especially with 80% of all cybersecurity breaches being a direct result of compromised account credentials, the need for a business solution that eliminates that problem could potentially save a company thousands if not millions of dollars a year.
Over the course of the past two years, HYPR has seen its annual company revenue grow by more than 300%. In fact, the tech startup has seen its customer base double to more than 20 different business types, including financial services, healthcare, education, and even government services. The cybersecurity startup now offers services for companies with over 300,000 employees.
HYPR Funding and Future Plans
In the Series C funding round for HYPR, the company raised $35 million. The newest round now brings the total raised capital for the startup to over $70 million. The funding round was led by Advent Tech with participation from RRE Ventures, .406 Ventures, BoldStart, Top Tier Capital, MESH, Alumni Ventures Group, Allen & Co, Samsung NEXT, and Mastercard. The new funding will be invested in accelerated marketing strategies as well as doubling its overall staff across its four city locations in New York City, Boston, London, and Tokyo.
HYPR has an incredible potential to grow even further through its technology. With the global cybersecurity market being worth over $149.67 billion with projections to grow to $304.91 billion by 2027.
When commenting on the newest funding round, HYPR co-founder and CEO George Avetisov said, “ The shift to remote work has propelled passwords to the top of every security organization's list of priorities. As the sophistication and volume of cyber-attacks grows, we're seeing unprecedented urgency for a solution to the password problem. We are thrilled to partner with Advent to truly accelerate the elimination of passwords. This investment will double the size of our team and expand our product delivery as we empower companies across the globe to go passwordless.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.