There are far fewer annoying things than managing one’s passwords.
There are a bunch of companies out there to help you attempt to do that. And there’s also a number of companies that want to go a step further and eliminate the password completely.
One such company, Stytch, just raised $30 million in a Series A round of funding as it launches out of beta with its API-first passwordless authentication platform.
The round caught our attention for a couple of reasons.
For one, this is the same startup that just months earlier announced it had raised a $6.25 million seed round led by Benchmark with participation from Index Ventures and a number of angels including Plaid co-founder William Hockey. That round was speculated to have valued the new company at a staggering $200 million (although that was never confirmed), and was actually raised last summer around the time of Stytch’s founding, but only announced this year. Other angels that have backed the company include Figma co-founder and CEO Dylan Field, Very Good Security co-founder Mahmoud Abdelkader, startup advisor Elad Gil and early Stripe employee and Cocoon co-founder Amber Feng.
Also notable about this round is that Stytch was founded by two former Plaid employees, Reed McGinley-Stempel (CEO) and Julianna Lamb (CTO), who built user authentication features that “millions” use to connect their bank accounts to apps like Venmo, Coinbase and Robinhood. The company was founded on the premise that passwords are no longer secure, and make companies easy targets (Read more...)