Passwordless authentication presents numerous advantages over traditional methods such as PINs, passphrases, and passcodes. Surveys conducted online indicate that compromised passwords are responsible for an estimated 81% of all security breaches, with the average person reusing passwords up to 14 times, thereby granting hackers significant access to one’s digital presence if they manage to crack the code just once.
Despite its enhanced security, passwordless technology encounters obstacles when it comes to adoption, particularly within enterprise settings. A Harris Poll study from 2021 found that 48% of companies had not yet implemented passwordless authentication, partly due to concerns about lacking the necessary expertise and teams to execute it effectively.
This situation benefits platforms like SecureW2, which specialize in simplifying the deployment and maintenance of passwordless authentication infrastructure. In a recent development, SecureW2 announced it had secured $80 million in funding from Insight Partners, marking its first funding round.
Max Wolff, a principal at Insight Partners, emphasized that SecureW2’s success with customers played a pivotal role in sealing the deal. He noted that organizations are increasingly seeking alternatives to traditional passwords for authenticating network and application access, and SecureW2 provides a user-friendly, cloud-native solution that is already in use by hundreds of customers worldwide.
Based in Seattle, SecureW2 originated as an open-source project designed to enable IT departments with non-Windows identity environments to connect Windows devices to their wired and wireless network infrastructure. The project’s founders, Tom Rixom and Bert Kashyap, were driven by the rising frequency of password-based attacks and a dissatisfaction with enterprise passwordless authentication solutions at the time.
SecureW2 has since evolved to offer a range of passwordless technologies, including a tool for issuing certificates – digital replacements for passwords – to authorize access to Wi-Fi, Ethernet, or VPN services. Their platform extends certificate availability to most mobile and desktop operating systems and can integrate with cloud identity environments like Okta to enhance policy-based security throughout an organization’s environment.
Kashyap explained that password-based connectivity to network infrastructure can lead to disconnects due to password rotation procedures, causing user frustration and productivity loss. Eliminating these issues not only results in a direct return on investment but also enhances security by safeguarding passwords used to access other applications and resources.
Up until now, SecureW2 has been self-funded and profitable, with positive cash flow. However, they sought funding for two primary reasons: to expand their market reach and to invest in software development and research and development within the broader context of SecureW2’s focus. Kashyap emphasized their use of machine learning for understanding and predicting device connections to infrastructure environments. They plan to offer these insights directly to customers, providing security anomaly detection, capacity planning, and more.
Kashyap concluded that as awareness grows regarding the need for a passwordless approach in both corporate and non-corporate infrastructure, SecureW2 aims to provide straightforward and cost-effective solutions to drive adoption and growth.
