Rapid growth in passwordless authentication fueled by increase in credential attacks and failures in traditional MFA
HYPR, The Passwordless Company™, announced another record-breaking year with stellar growth across annual recurring revenue (ARR), customer acquisition, workforce expansion and overall company investment following its Series C $35 million financing. During its fiscal year ending February 2022, HYPR doubled its ARR and grew its customer base, signing new clients in traditional sectors such as banking and insurance, in addition to expanding into new markets.
2021 saw the highest number of breaches and the largest year-over-year increase to date, with a 68% increase in comparison to 2020. According to Verizon’s recent Data Breach Investigations Report (DBIR), credentials were the leading breach type, taking up 61% of the total. Despite the increase, only 35% of organizations believe their current authentication solution is fully secure and fewer than 16% have deployed an MFA solution that eliminates shared secrets and supports a strong Zero Trust strategy, according to HYPR’s 2022 State of Passwordless Security report. With the standardization of remote work, regulatory pressures for Zero Trust initiatives, and the prolificacy of cyber-attacks, organizations are prioritizing authentication as part of their security framework – and more specifically, adopting FIDO-based methods, the gold standard in passwordless multi-factor authentication (MFA) set by CISA and OMB.
“2021 was monumental for HYPR. We expanded our market visibility, grew our business and made significant inroads in debunking passwordless myths and misconceptions,” said Bojan Simic, co-founder, CEO and CTO of HYPR. “We see these milestones as a sign of evolution – not just of our business, but of the overall authentication market. We have the tools, resources and momentum to kickstart the next stage in our journey towards fixing the way the world logs in.”
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Customer Growth and Vertical Expansion
HYPR’s $35 million Series C investment with Advent International and its go-to-market acceleration fueled the company’s growth in 2021. In 4Q21, HYPR recorded rapid growth in passwordless authentication, nearly doubling its customer base, with the financial sector representing 150% of said growth. The company currently works with global enterprises across multiple verticals, including two of the four major U.S. financial institutions and several organizations in the banking sector, arguably the most at-risk market. Additionally, HYPR announced it was selected by Aon, a leading global professional services firm, to roll out HYPR’s True Passwordless™ MFA solution to its approximately 50,000 employees. Aon joins long-standing customer Aetna CVS Health, who also shared a significant milestone: achieving a 98% reduction on account takeover fraud (ATO) and in investigation and incident response costs totaling millions of dollars, as a result of deploying HYPR’s passwordless MFA. HYPR also executed the rollout of phishing-resistant MFA in more than 200 countries, supporting one of the world’s largest manufacturing conglomerates.
HYPR expanded its presence beyond traditional sectors, partnering with customers in agriculture, auto and manufacturing, utilities, hospitality and tourism, and nonprofit. The company also broadened its global reach, securing new enterprise customers in EMEA, including financial institutions in Poland and Switzerland.
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Partnerships and Global Accreditations
HYPR continues to leverage its partnerships and global ecosystem to deliver passwordless MFA to businesses of all sizes. Since the launch of the Velocity Partner Program, HYPR has tripled the number of signed members, and in 2021 alone, saw a 187% year-over-year growth in deals closed with its partnering vendors, generating an increase of more than 260% in ARR. With its ongoing success, HYPR plans to launch its Certification Program for Sales and Solution Delivery later this year, as part of the Velocity Program. This will further provide partners with the tools and enablement training to become FIDO-based phishing-resistant MFA experts.
The company also obtained its System and Organization Controls (SOC 2) Type II certification and three International Organization for Standardization (ISO) certifications adhering to cloud service security (ISO27001, ISO27017) and privacy (ISO27018) requirements. The accreditations followed HYPR’s invitation to join Microsoft Intelligent Security Association (MISA), a consortium of experts from across the cybersecurity industry.
Organizational Leadership and Workplace Excellence
HYPR appointed long-serving Goldman Sachs executive Michele Docharty to its Board of Directors. As a highly respected leader in financial services and a strong supporter of diversity initiatives, Michele will work alongside HYPR to drive market maturity and serve as an advocate and advisor on the company’s Diversity, Equity and Inclusion efforts. HYPR also welcomed Jay Roxe as CMO and officially named HYPR founders Bojan Simic as CEO and Roman Kadinsky as President and COO.
HYPR continues to focus on advancing the company forward by investing in its workforce. As a result, the company has expanded its team across all areas of the business, increasing headcount by 107% over the last year, in addition to being recently named by BuiltIn as one of the best midsize companies to work for in NYC.
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