Duo, the company that handles two-factor ID for Facebook and Uber, raises $30 million
Duo Security has made a name for itself as an innovator in two-factor security identification, leveraging mobile to make it easier for employees or consumers to use two different methods to confirm identity. And through the affordability of its solutions, the company has built up an impressive client list that includes Facebook, Palantir, Twitter, Uber, LinkedIn, and others.
Today, the Ann Arbor, Michigan-based company announced that it is expanding its security services beyond two-factor identification and has ]received $30 million to do it.
Duo Security’s new Duo Platform, which officially launches later this month, gives more power to organizations to customize their security processes as they see fit. Among the new features, users can now create specific rules pertaining to how and when users can access applications, enforce security policies in real-time, and better detect and react to security breaches.
Jon Oberheide, Duo Security co-founder and chief technology officer, said that the new funding is going to be used to accelerate growth, continue to develop new products beyond the new Duo Platform launch, and help the company expand beyond U.S. markets.
“The real motivation for this round was to lean into this big gap we see in the security market, that we see growing, of there not being effective, pragmatic, and affordable solutions for the masses of mid-market enterprise companies,” said Oberheide
“While we’ve been extremely successful in the two-factor security space,” he added. “There’s a much bigger opportunity in the larger security space. We’ve been told by our customers and observed ourselves over the past couple of years that the security industry in its current form is broken.”
A testament to the trust that Duo has established among some of the biggest Internet companies is that after Slack was recently hacked, it turned to Duo Security tighten its security protocols.
The new Series C venture round was led by new investor Redpoint Ventures with previous backers Benchmark, Google Ventures, Radar Partners, and True Ventures also participating. To date, Duo Security has raised about $48 million in total funding.
Allen Beasley, a partner at Redpoint Ventures, said that he sees a lot of similarities between Duo Security’s approach to security and Redpoint portfolio company Zendesk’s approach to customer service. From his perspective, Duo is on a similar trajectory as Zendesk was at this stage in its development, especially in terms of making a complicated IT process much more simple to use by enterprise customers.
If the company continues to prove that its solutions, including the soon-to-launch Duo Platform, are the best security fit for the current IT environment in Silicon Valley, Duo could one day follow Zendesk’s path all the way to the New York Stock Exchange.
[illustration by Brad Jonas]