Open-source password manager Bitwarden has received a cool US$100 million investment led by growth equity firm PSG.
Bitwarden’s software manages login credentials in a personal encrypted vault that’s locked behind a master password set by its users. With it, users only need to memorize a single password to access all of their credentials. Although password managers seem counterintuitive in that they’re a single point of failure, they protect their users’ overall security by generating strong, unique passwords and reducing password reuse. Additionally, they also provide secure credential sharing services.
“Our investment in Bitwarden reflects our conviction that the password management market is poised for considerable growth as online account use grows and security concerns mount in the hybrid working environment,” commented Tom Reardon, managing director at PSG, in the press release. Reardon emphasized Bitwarden’s open-source aspect, calling it a distinguishing feature that sets it apart from the rest.
Since it’s an open-source product, anyone can view and audit Bitwarden’s source code. The service is also cross-platform, available on both mobile and desktop systems.
In its press release, Bitwarden said it serves “tens of thousands” of businesses and millions of end users.
The service offers a free tier for personal password management. A paid enterprise version brings extra features such as single-sign-on (SSO) capabilities and self-hosted deployment options.