Salesforce Ventures leads $120M spherical in Auth0 as pandemic fuels Seattle-area startup’s id tech

Salesforce Ventures leads $120M round in Auth0 as pandemic fuels Seattle-area startup’s identity tech

Auth0 CEO Eugenio Tempo speaks on the GeekWire Summit final 12 months. (GeekWire Photograph / Dan DeLong)

Auth0 is elevating one other huge swath of money as demand for its id authentication software program rises amid the COVID-19 pandemic.

The Seattle-area startup simply raised a $120 million Collection F spherical led by Salesforce Ventures that will increase its valuation to $1.9 billion. This comes after a $103 million spherical in Might 2019. Whole funding to this point for the 7-year-old firm is greater than $330 million.

The pandemic has accelerated the adoption of digital applied sciences throughout quite a lot of industries. Firms are connecting increasingly more with prospects within the cloud — and meaning alternative for Auth0.

Auth0 combines present login and id verification choices into a number of strains of code that builders can rapidly add to their purposes. Its platform consists of companies like single sign-on, two-factor authentication, password-free login capabilities, and the flexibility to detect password breaches.

Whether or not it’s healthcare corporations doing extra digital appointments or colleges transferring training on-line, there’s a necessity for id safety as organizations go digital. On prime of that, there is a rise in knowledge hacking assaults as extra high-value transactions and data transfer on-line.

“It’s good to know who the customers are, and it’s essential to defend these customers,” mentioned Auth0 CEO and co-founder Eugenio Tempo. “That’s precisely what we do.”

(Auth0 Photograph)

Tempo mentioned the corporate beat its unique Q2 income projections made at the beginning of 2020, even with an ongoing financial and well being disaster.

“The demand is huge,” he mentioned.

Auth0 didn’t want to lift one other spherical this 12 months. However the further capital will assist the corporate press the fuel pedal down much more.

“It accelerates our development and permits us to be bolder, to take even larger dangers in new areas,” Tempo mentioned.

The funding from Salesforce Ventures, the VC arm of Salesforce, is validation for the corporate’s progress and imaginative and prescient for the longer term, Tempo mentioned. Auth0 and Salesforce have already got a number of joint prospects.

“Auth0’s experience in end-to-end id merchandise is well-aligned with Salesforce’s Buyer 360 platform,” John Somorjai, EVP, Company Improvement & Salesforce Ventures at Salesforce, mentioned in a press release.

Salesforce Ventures lately joined a funding spherical for Outreach, one other Seattle unicorn startup.

Auth0 employees
Auth0 workers present their spirit, earlier than social distancing. (Auth0 Photograph)

Auth0 prospects come from a bevy of industries throughout the globe. They embody Atlassian, The Economist, Siemens, AMD, Mazda, LATAM Airways, and others. Auth0 processes greater than 4.5 billion login transactions per thirty days.

The startup competes with numerous different huge gamers: Okta went public in 2016 and is now valued at about $25 billion. Tempo’s former employer Microsoft additionally does enterprise on this market with its Energetic Listing product. Different comparable startups embody Onfido, Socure, Evident, Jumio, and extra. McKinsey final 12 months estimated the ID-verification-as-a-service market reaching $16-to-20 billion by 2022.

Auth0’s secret sauce is a mixture of taking a developer-first method and making it straightforward to implement its software program into any state of affairs. Tempo mentioned it’s a “no-brainer” for corporations to make use of Auth0 versus constructing their very own identification options.

“What Stripe did for funds, what Twilio did for messaging and voice, what SendGrid did for e-mail — we do the identical for authentication and authorization,” Tempo mentioned.

Auth0 doesn’t have a selected objective of going public, however Tempo mentioned he expects the corporate to attain IPO “readiness” by early 2022.

The startup, considered one of a handful of “unicorns” within the Seattle area, has averted layoffs this 12 months and as an alternative has employed greater than 100 new employees. It employs about 650 individuals throughout six places of work.

Auth0 is at present ranked No. 6 on the GeekWire 200, our index of prime Pacific Northwest startups.

Tempo grew to become an entrepreneur in his native Argentina, the place his first startup didn’t fairly take off the way in which Auth0 did. He moved on to a number of roles at Microsoft over a 12-and-a-half-year interval, grew to become a U.S. citizen, and determined it was time to gamble once more on beginning one thing.

Tempo helped co-found the corporate in 2013 with Matias Woloski and took over as CEO in December 2017.

Others taking part within the Collection F spherical had been DTCP, one other new investor, and present backers together with Bessemer Enterprise Companions, Sapphire Ventures, Meritech Capital, World Innovation Lab, Trinity Ventures, Telstra Ventures, and K9 Ventures.

Regardless of the pandemic, enterprise capitalists are pouring cash into Pacific Northwest tech corporations at unprecedented ranges, considerably outpacing the variety of offers and {dollars} invested within the first half of 2018 and 2019, in keeping with a current GeekWire evaluation.

A survey of 37 chief monetary officers from Seattle-based corporations signifies that the town’s tech trade stays sturdy amid the COVID-19 disaster.

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