Passbolt, an open-source password management platform designed for teams, has secured $8 million in a seed funding round to enhance its enterprise-grade security solutions and expand its market reach.
The round was led by Airbridge Equity Partners, with participation from existing investors including Expon Capital’s Digital Tech Fund, ScaleFund, Seeder, Dedicated, Bondi Capital, Carricha Capital, and notable angel investors such as Christophe Bianco and Xavier Buck.
A Collaborative Approach to Password Management
Founded in 2017 by Kevin Muller, Rémy Bertot, and Cédric Alfonsi, Passbolt aims to provide businesses with a more collaborative and secure way to manage passwords, addressing the limitations of traditional solutions like KeePass and Bitwarden. Unlike these standalone options, Passbolt offers:
- Granular access control, allowing businesses to manage who has access to sensitive credentials.
- Self-hosted deployment, ensuring data stays within an organization’s firewall.
- Seamless team collaboration, enabling shared password management across departments with audit capabilities.
Muller, Passbolt’s CEO, highlighted the need for a more integrated solution:
“Current tools lack interoperability and granular control, leaving businesses with fragmented security solutions. Passbolt provides a unified, open-source platform that grows with teams.”
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Strong Market Traction
With over 38,000 teams using its free community edition and 2,000 paying customers, Passbolt has seen widespread adoption across industries, with 75% of customers opting for self-hosted solutions. Its Pro edition, which starts at $49 per month for 10 users, offers advanced features such as:
- Single Sign-On (SSO) integration.
- Role-based access controls.
- Activity logs and password expiration policies.
Path to Growth and Innovation
Having achieved profitability in 2024, the company decided to raise funding to accelerate product development and expand its offerings to meet growing enterprise demands. The funds will be used to:
- Introduce passkey management, addressing the shift towards passwordless authentication.
- Expand its customer base in the enterprise segment, competing with Privileged Access Management (PAM) solutions like CyberArk.
- Enhance its cloud-hosted services and self-hosting capabilities.
Future Outlook
With its open-source foundation and strong security focus, the startup is positioning itself as a leading alternative in the password management space for businesses seeking flexibility, collaboration, and control.
As investor Rick van Boekel from Airbridge Equity Partners noted:
“Passbolt’s rapid growth and strong SaaS metrics demonstrate the rising demand for a more secure, collaborative, and scalable password management solution.”
With fresh funding and ambitious plans, Passbolt is set to further disrupt the enterprise password management market, offering a trusted solution for teams worldwide.
