80% of hacking-related data breaches are the result of compromised and weak credentials. Yet we are still reliant on using the antiquated and obsolete password system. For this reason, passwords are still a hacker’s favorite target. HYPR, the first password-less authenitication solution, believes that the only way to truly keep safe is to get rid of passwords completely. HYPR’s solution is powered by advanced Public-Key Cryptography that is linked to individual devices, forcing hackers to attack specific devices. HYPR uses your phone as the gateway for authentication. The company, founded in 2014, is growing revenue 350$ YoY and is trusted by a growing enterprise customer base that includes companies like Rakuten, Mastercard, Aetna, and T-Mobile
AlleyWatch caught up with CEO George Avetisov to learn more about the security landscape, the company’s expansion, and latest round of funding, which brings its total funding to $32.1M.
Who were your investors and how much did you raise?
This $18.3M Series B was led by Comcast Ventures. Investors in this round included .406 Ventures, Boldstart, RTP, RRE Ventures, Mastercard, Samsung NEXT, Allen & Co, and TripHammer Ventures.
Tell us about the product or service that HYPR offers.
Passwords and shared secrets are the hackers’ favorite target. It’s because they’re easy to steal and they’re all stored in one place. Despite millions of dollars invested in authentication, enterprises still haven’t been able to get rid of passwords. Billions of internet users still log into their desktops and online accounts with passwords each day.
HYPR is the first authentication platform designed to eliminate passwords across the enterprise.
Instead of relying on shared secrets, HYPR is powered by advanced Public Key Cryptography deployed at scale across millions of mobile devices. This approach removes the hackers’ primary target – forcing them to attack each device individually – while securing users with a lightning-fast login experience that’s easy to use and easy to deploy.
What inspired you to start HYPR?
I got the idea for HYPR after fraudsters targeted my previous e-commerce business. Having been a victim of credential reuse and account takeover, I became very interested in finding a solution to the identity problem. There wasn’t anything out there that addressed the root of the problem – so I decided to build HYPR.
How is HYPR different?
HYPR replaces your password with your phone in a unique way. Unlike passwords and legacy authentication providers that rely on shared secrets, HYPR replaces the use of passwords with Public-Key cryptography. This approach combines advanced security with a mobile-first user experience to solve the password problem in a way that’s easy to use.
What market does HYPR target and how big is it?
The opportunity to enable true passwordless security is massive.
The Identity and Access Management market size is expected to reach $24B by 2025. Gartner predicts that by 2022, 60 percent of large and global enterprises, and 90 percent of midsize enterprises, will implement passwordless authentication methods in more than 50 percent of use cases.
HYPR True Passwordless Security has been deployed by businesses of all sizes, and our two primary use cases are Strong Customer Authentication and Workforce Login.
What’s your business model?
HYPR is a subscription-based service billed on a per-user basis.
What was the funding process like?
This was an oversubscribed round and much of the credit goes to our early investor Boldstart Ventures. Ed Sim and the team were instrumental in bringing together a group of some of the brightest minds in the industry. We couldn’t be happier with the outcome.
What are the biggest challenges that you faced while raising capital?
Fundraising can be a distraction for founders. The more time you spend raising capital, the less time you spend building your business. Working with our round leader Comcast Ventures was one of the most straightforward and pleasant experiences we’ve ever had. David Zilberman, Andy Cao and the team at CV allowed us to bring together a fantastic round without ever missing a beat on our core business.
What factors about your business led your investors to write the check?
HYPR is a strong solution to a very difficult problem, with real customers deploying the product. Those ingredients sound like common sense but are often overlooked.
How has the business changed since we chatted after your HYPR’s seed round in 2016?
The HYPR platform has really evolved since 2016. We’ve launched new products such as HYPR Workforce Authentication, our Passwordless Desktop MFA product, and we’ve seen numerous plugins and use cases developed on top of our core offering.
The HYPR platform has really evolved since 2016. We’ve launched new products such as HYPR Workforce Authentication, our Passwordless Desktop MFA product, and we’ve seen numerous plugins and use cases developed on top of our core offering.
What are the milestones you plan to achieve in the next six months?
Continuing our expansion into EMEA is top of mind. The PSD2 regulation has been a huge driver of our success and we’re going to turn up the volume to 11.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Focus on customers. They’re your best source of capital.
Where do you see the company going now over the near term?
Going to our new HQ! We just moved to a great new home at 1001 Ave of the Americas, right in the heart of midtown Manhattan.
Where is your favorite fall destination in the city?
Dani’s Pizza in Kew Gardens. 2 slices, extra sauce. Best in the city.
