SOURCE: BioPassword

January 08, 2007 08:00 ET

BioPassword Secures $11 Million Strategic Funding From Industry Leaders

Strong Authentication Software Leader Completes 2006 With 700% Annual Growth; Becomes Leading Online Biometric Authentication Solution

SEATTLE, WA -- (MARKET WIRE) -- January 8, 2007 -- BioPassword, Inc., the leading software company providing secure authentication and anti-fraud solutions based on the behavioral biometric of keystroke dynamics, today announced it has secured $11 million in Series C financing, which will be used towards continued product development, sales outreach, global expansion and operations. New investor RRE Ventures joins a strong list of existing investors including Citrix Systems, Inc. (NASDAQ: CTXS), Ignition Partners and OVP Venture Partners, which have reinvested in the current round.

"2006 was a banner year for BioPassword in which we introduced two innovative products, signed more than 60 partners, signed nearly 500,000 customer licenses, became the leading biometric security technology for online applications, grew revenue bookings by 700 percent and received validation from the most prestigious media and analysts in the industry," said BioPassword CEO Mark Upson. "This round of financing from outstanding strategic partners is a strong endorsement of our achievements thus far and will fuel our accelerated growth in 2007."

"BioPassword has demonstrated the vision, industry knowledge and solid management leadership to launch two industry leading products in a single year that have been widely praised and adopted," said Stuart Ellman, RRE Ventures General Partner and Founder. "We view BioPassword as a promising investment for its combination of a unique approach to multi-factor authentication and proven success delivering the solution. We are excited to offer our management, operations, and investment expertise to help BioPassword maximize its many opportunities for continued innovation and growth."

"We saw early on BioPassword's potential. The company's ability to execute on that potential over the last few years has been impressive and the resulting industry accolades and customer adoption is well-deserved," said OVP Ventures Partner Lucinda Stewart. "We look forward to continuing to foster BioPassword as it becomes a distinguished leader in the security industry."

"We believe BioPassword has the potential to greatly expand its market share in the coming year," said Ignition LLC. Partner John Connors. "While the marketplace quickly embraced the first applications of BioPassword's unique technology, we expect to see additional exciting products from this innovative company."

"BioPassword has successfully transformed technical innovation into commercial multi-factor authentication and anti-fraud solutions that are simple to deploy, manage and use. We are pleased to play an integral role in the company's success through the strategic partnership between Citrix and BioPassword," said Michael Cristinziano, Citrix Corporate Vice President, Strategic Development.

In 2005, BioPassword claimed that the company was "poised to explode in 2006" and truly did, exceeding its aggressive revenue and company growth plans. Major achievements in 2006 included:

Technology and Innovation -- BioPassword launched BioPassword Internet Edition for multi-factor authentication in web-based environments and BioPassword Enterprise Edition for multi-factor authentication in Active Directory networks and Citrix Presentation Server environments. The company also demonstrated its continued commitment to innovation and intellectual property leadership by adding seven patent-pending technologies to its patent portfolio.

New Customers -- Customer response to BioPassword's cost-effective multi-factor authentication solution has been overwhelming, as proven by over 40 new customers signed in ten months. Despite a wide variety of multi-factor authentication solutions, organizations have been eager to implement BioPassword for its proven security that doesn't disrupt end-users' login processes. Customers such as FORUM Credit Union and Parda Federal Credit Union rave about its quick deployment, enabling the organizations' compliance with FFIEC regulations.

Rapid End-User Adoption -- Since BioPassword uses an approach with which consumers are already familiar -- typing userID and password -- end-users have embraced BioPassword with nearly 500,000 adopting it in 2006. As a result, BioPassword has become the leading online biometric authentication solution.

Impressive Partners -- In June BioPassword formed a strategic partnership with Citrix Systems to add its software-based biometric authentication to Citrix Presentation Server, Citrix Password Manager and the Citrix Access Suite. Together the technologies authenticate anytime, anywhere access to critical applications for mobile employees, customers, partners, contractors and guests. The partnership also enables BioPassword to offer its innovative authentication solution to Citrix's worldwide network of resellers.

Since launching its global Premier Partner Program in May, BioPassword signed over 60 resellers operating in 16 different countries eager to offer BioPassword's unique multi-factor authentication solution to their customers. To enable VARs to quickly and easily fulfill this growing product demand, BioPassword established a two-tier channel model and partnered with industry leading distributor Tech Data Corporation (NASDAQ: TECD).

Awards and Achievements -- In 2006, BioPassword received accolades from industry analysts and top media publications.

The Gartner Group validated BioPassword's unique keystroke dynamics technology stating that, "The only ubiquitous 'sensor' is a PC keyboard, which makes typing rhythm the only viable biometric for 'in band' consumer authentication."

BioPassword topped the list of CRN magazine's "Five Security Startups You Should Know," and BioPassword Internet Edition was awarded the Computerworld Horizon Award for cutting-edge technologies.

BioPassword's solutions were also featured in some of the industry's most prestigious publications such as TIME magazine, Fast Company, Red Herring, Forbes and The Economist.

About BioPassword

BioPassword, Inc. (www.biopassword.com), located in Issaquah, Washington, leads the market in delivering enterprise security software solutions for multi-factor authentication and reducing fraud using the biometric science of keystroke dynamics. BioPassword protects company and individual assets with a simple, yet powerful combination of the user's standard login credentials (userID and password) with the behavioral biometric of keystroke dynamics (their unique typing rhythm). BioPassword's authentication software is fast, accurate, transparent, scalable to millions of users and immediately deployable across the organization and the Internet without the need for expensive tokens, cards or other specialized hardware. To learn more about BioPassword visit our Web site or contact us at (425) 649-1100. For a live demonstration of keystroke dynamics, log onto www.biopassword.com/demo1.

Contact Information

  • Contact:

    Doug Wheeler
    BioPassword, Inc.
    (425) 649-1100
    Email Contact

    Aimee Balsley
    Schwartz Communications, Inc.
    (415) 512-0770
    Email Contact