Passwords aren't dead yet. Bitwarden raises $100 million for password management

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Are passwords dead? With many vendors like Microsoft, Apple, and Google moving to passwordless authentication options alongside the FIDO Alliance and credential-based attacks on the rise, you'd be forgiven for thinking that passwords are on the way out, but login credentials just aren't done yet.

Just today, open-source password manager Bitwarden announced that it had received a $100 million investment from PSG, a growth capital firm, with participation from Battery Ventures, noting that password management still has a vital role to play in businesses and consumers alike. security for the foreseeable future.

For businesses, the investment shows that while passwordless authentication options are growing, improved password management could still provide an effective answer to the onslaught of password theft. credentials and phishing emails.

The announcement comes as more users struggle to manage their passwords online, with research showing that 39% of Americans report experiencing high levels of password fatigue.

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This is not surprising considering the high volume of accounts users juggle. In fact, NordPass estimates that each person has to manage 80-100 passwords, which makes it mentally exhausting to create strong and unique passwords for every online account.

As a result, many users resort to reusing credentials and selecting weaker passwords to make logging into their online accounts easier. This inevitably makes it easier for cybercriminals to conduct account takeover attempts in an extremely punitive threat landscape.

Research reveals that 81% of FTSE 100 companies had at least one compromised ID exposed on the dark web, with a total of 31,135 leaked and stolen IDs detected for these companies.

Password management vs credential theft

While some vendors are responding to this threat landscape by considering eliminating login credentials altogether, organizations like Bitwarden remain committed to better password management as the key to protecting users from these threats. types of threats.

"Password management has become a mandatory part of every company's security stack," said Michael Crandell, CEO of Bitwarden.

"Bitwarden helps businesses and individuals stay protected with strong, unique passwords for all of their online accounts. This helps businesses avoid breaches and ransomware, and helps individuals avoid data theft. identity,” Crandell said.

In practice, Bitwarden provides users with a virtual space to store their passwords, along with features like auto-fill credentials, auto-generate passwords, and word strength scoring to help them manage their password security more effectively at scale to reduce fatigue.

A look at the password management market

Bitwarden is one of the largest password management providers