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NEA, Pelion lead $8.2m Stormpath Series A round

19 Feb 2013

username password security onlineNew Enterprise Associates and Pelion Venture Partners have led an $8.2m Series A financing round for online identity and user authentication service Stormpath.

Flybridge Capital also took part in the investment, which coincides with Stormpath formally leaving its ‘beta’ period and launching the general availability of its service.

The Series A round was preceded by a seed round from NEA and Flybridge, and an angel round led by Andy Rachleff, co-founder of Benchmark Capital and CEO at WealthFront.

Stormpath was formed in 2011 and currently has about 1,000 users.

The company’s user management service is free for developers, with premium features offered in a subscription-based pricing model.

NEA general partner Peter Sonsini said, “Stormpath has built an impressive team and is at the heart of cloud infrastructure and developer-driven IT.

“We’re excited by the wave of developer services, and because user management is necessary for every application, every developer can use the service.”

Forrester Research suggests the identity management market will grow to $12bn in 2014, while 451 Research says cloud adoption is growing by 24 per cent each year.

The investment comes two months after global growth equity firm TA Associates made its latest investment in the online security sector by purchasing authentication and encryption company DigiCert.

That deal followed TA’s 2008 investment in Canadian business Radialpoint, which provides managed internet security and digital home care services to broadband providers.

The US-based company aims to provide secure information transfer by using Secure Socket Layer (SSL) certificates, which websites must use to initiate secure sessions with web browsers.

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