The Identity Experience company, Transmit Security has secured $543 million in Series A funding, bringing the company’s pre-money valuation to $2.2 billion. This is the largest Series A funding round in cybersecurity history and one of the highest value for a bootstrapped company. Insight Partners and General Atlantic led the funding round with additional investment from Cyberstarts, Geodesic, SYN Ventures, Vintage, and Artisanal Ventures.
The funds will be used to extend Transmit Security’s reach and core business operations, as well as to invest in important global regions in order to grow the organization and achieve its mission to help the world go passwordless.
According to research, 55% of users abandon a website because the login procedure is too complicated, and 87.5 percent of users are locked out of their online accounts after too many failed login attempts. Even worse, instead of going through the procedures to retrieve or reset login credentials, 92 percent of shoppers will quit a website without making a transaction.
Outdated and ineffective password-based systems are costing businesses revenue, and Forrester reports the average help desk labor cost to reset a single password is more than $70. In addition to delivering poor user experiences and costing brands millions of dollars in revenue, password breaches pose a major threat to data security. Weak passwords account for more than 80% of all data breaches and are the result of the majority of all account takeovers.
Using biometric authentication, Transmit Security provides the first natively passwordless identity and risk management solution to the largest brands in the world. Transmit Security’s mission is to enable organizations to deliver advanced identity use cases that improve the user experience, enhance security, and satisfy compliance requirements at a fraction of the time and cost of traditional identity solutions.
Transmit Security supplies the world’s top brands with the first passwordless identification and risk management solution using biometric authentication. Transmit Security’s objective is to help businesses provide advanced identity use cases that improve user experience, increase security, and meet regulatory requirements in a fraction of the time and expense of traditional identity solutions.
“Passwordless authentication is so much more than ensuring customers can easily and seamlessly access their information, their accounts and make purchases – it’s about revolutionizing the way companies interact with their customers. By eliminating passwords, businesses can immediately reduce churn and cart abandonment and provide superior security for personal data,” said Transmit Security CEO and Co-Founder Mickey Boodaei. “Our customers, whether they are in the retail, banking, financial, telecommunications or automotive sectors, understand that providing an optimized identity experience is a multimillion dollar challenge. With this latest round of funding from premier partners, we can significantly expand our reach to help rid the world of passwords.”
Rakesh Loonkar, President and Co-Founder, Transmit Security, said “Transmit Security is offering application owners a new reality: The ability to go passwordless no matter the size of their organization or number of users. The fact that we have raised a record amount of funding is a clear indication that the world is ready to eliminate passwords and embrace biometric authentication technology so that they can deliver enhanced user experiences combined with significantly heightened levels of security.”
Mr. Boodaei and Mr. Loonkar have an in-depth understanding of the complexities and challenges surrounding the identity management space, and they are focused on simplifying authentication journeys for enterprise organizations across industries. In 2002, Mr. Boodaei helped build and was the co-founder of Imperva, a cybersecurity platform which went public in 2011. In 2006, Mr. Boodaei joined forces with Mr. Loonkar to found Trusteer, a fraud protection software platform. Seven years after its inception, Trusteer was sold to IBM in one of the largest security acquisitions the company has completed.