1Password holds $100 million secondary sale, inks deal to deepen AI focus

Toronto-based 1Password has partnered with Browserbase, an infrastructure provider for artificial intelligence (AI) agents using web browsers without a graphical interface.

The Canadian cybersecurity company claims the partnership will address a key security challenge in the agentic AI pipeline while also creating liquidity for shareholders.

“AI is opening up new ways to help people work smarter and get more done, but the fundamentals of security don’t change.”

As people adopt AI agents to perform tasks on their behalf, those agents must be able to log in and work securely. 1Password’s Secure Agentic Autofill plug-in allows agents on Browserbase’s infrastructure to authenticate with web services (like logging into a user’s account) without exposing the user’s credentials. The partnership with the cloud browser automation platform is similar to the deal it struck with AI-native web browser Perplexity, one of Browserbase’s customers, last month.

The partnership followed a $100-million secondary sale of the company, with participation from Qualtrics founder Ryan Smith and Accel partner Ryan Sweeney, according to Bloomberg. Sweeney and Smith purchased the reportedly $75-million stake in 1Password from founders and employees through their new Halo Fund. Flume Ventures also participated in the sale, which is said to have maintained the $6.8 billion valuation 1Password earned in its 2022 equity round.

1Password CEO David Faugno has previously worked in leadership positions with both Sweeney and Smith at Accel and Qualtrics. The sale led to 1Password becoming the official cybersecurity partner of Smith’s NBA and NHL teams, the Utah Jazz and Utah Mammoth.

Secondaries have become an increasingly popular means of generating liquidity for shareholders amid a lack of distributions from exits like initial public offerings (IPOs). Faugno told The Globe and Mail in March that 1Password was on track for an IPO, but noted it was unlikely the company would do so before 2026.

Adapting to the AI era has been a focus for 1Password this year. The company bolstered its Extended Access Management platform in April with ways to help customers manage AI agents more securely. Faugno, who was co-CEO at the time, told BetaKit that AI agents are often accessing and taking action with sensitive corporate credentials and data, creating an “unbelievable security risk.”

“AI is opening up new ways to help people work smarter and get more done, but the fundamentals of security don’t change,” Faugno said in a statement.

1Password has seen major leadership transitions this year, including the departure of CTO Pedro Canahuati and CRO Julian Teixeira this month. Earlier in the year, 1Password brought on CFO Greg Henry to replace Jeannie De Guzman as she transitioned to COO. In July, longtime CEO Jeff Shiner moved to executive chair, handing the reins to Faugno.

Feature image courtesy 1Password.