Duo Security Raises $70 Million, Earning Valuation of More than $1 Billion

Duo Security co-founders Dug Song and Jon Oberheide

Duo will use round of funding led by Meritech Capital Partners and Lead Edge Capital to expand global operations and fund increased innovation in the Trusted Access space.

Duo Security, one of the fastest growing information security and software-as-a-service (SaaS) companies in the world, today announced it has raised $70 million in additional financing led by Meritech Capital Partners and Lead Edge Capital. The Series D round also included new investors, Geodesic Capital and Index Ventures, as well as existing investors Redpoint Ventures and True Ventures. A new strategic partner, Workday, also participated in the round. Duo now ranks among the world’s most valuable private SaaS companies with total funding of $119 million, and a company post-money valuation of $1.17 billion.

Alongside this financial milestone, Duo is also pleased to announce it has exceeded 10,000 customers and protects more than 300 million logins worldwide every month. Additionally, Duo welcomes Lorrie Norrington, Operating Partner for Lead Edge Capital, former eBay President and former Board Member for McAfee, to the Board of Directors and Rob Ward, Co-founder of Meritech, as Board observer.

Duo helps defend organizations against breaches by making security easy and effective. Anchored by its flagship two-factor authentication (2FA) app, Duo’s “Trusted Access” product suite verifies the identity of users and the health of their devices before granting them access to data and applications - helping prevent breaches and account takeover.

Cybersecurity has become the biggest geopolitical problem of our time. We are at a point where every organization in every industry is challenged with the overwhelming cost and complexity of securing a modern workforce," said Dug Song, Chief Executive Officer, Duo Security. "Duo pioneered cloud-delivered security by making user access easy, effective, and trustworthy. With this investment, we will continue to innovate solutions to the world's most fundamental security problems, expand our global reach, and accelerate our leadership position in the industry.

“In a world with innumerable security products that are difficult to implement, use and maintain, Duo stands alone as a vendor beloved by its customers and end users,” said Rob Ward, Managing Director at Meritech Capital Partners. “As a result, Duo has established itself as the leader in cloud-based trusted access and we are delighted to support their rapid growth.”

Rapidly Expanding User Base and Building World Class Team

Duo’s momentum is underlined by more than doubling its annual recurring revenue (ARR) for the past four years. The company also:

  • Protects more than 10,000 diverse organizations worldwide, including Etsy, Facebook, K-Swiss, Paramount Pictures, Random House, Yelp, Zillow and more.
  • More than doubled employee headcount in 2016, today with over 500 team members globally.
  • Secures more than 300 million logins worldwide every month.

“Duo represents one of the most exciting opportunities in the security market today. Through its product excellence, market leadership and outstanding team, Duo has demonstrated best in class financial and operating performance,” commented Lorrie Norrington, Operating Partner for Lead Edge Capital. “Lead Edge is thrilled to continue to support Duo through the next phase of its growth and I am delighted to join the Board of Directors.”

Product Innovation and Strategic Partnerships

Microsoft Integration: Alongside this largest round of funding to date, Microsoft recently announced integration of Duo’s 2FA product into their Azure Active Directory (Azure AD) platform.

Duo Beyond Expansion - A Trusted Access Vision: Duo also continues to drive innovation in security with Duo Beyond, the first major commercial implementation of Google’s BeyondCorp framework that drastically improves and simplifies the security management of how people and their devices access critical corporate applications. Duo gives administrators visibility into all end user devices including personal Macs, PCs and mobile devices - all without agents. Some recent product enhancements include:

  • Duo now extends secure single sign-on (SSO) capabilities for all its paid product editions.
  • With Trusted Endpoints, Duo customers can now establish policies to allow only trusted laptops, desktops and mobile devices to access critical work applications such as Workday, Salesforce, source code repository or an engineering VPN - all without installing any agents.
  • Duo has expanded its Trusted Access vision to healthcare, offering Electronic Prescriptions for Controlled Substances (EPCS) compliant remote identity (ID) proofing and strong authentication. This helps hospitals fight against prescription drug fraud and comply with regulations easily.

About Duo Security

Duo helps defend organizations against breaches through its easy and effective cloud-based Trusted Access product suite. The company verifies the identity of users, and the health of their devices, before granting them access to applications. Duo’s balance of security and usability has led them to be an enduring and trusted partner to thousands of customers world-wide, including Dresser-Rand, Etsy, Facebook, K-Swiss, Random House, Etsy, Yelp, Zillow, Paramount Pictures, and more.

The Ann Arbor, Michigan-based company maintains offices in Austin, Texas; San Mateo, California; and London, and is backed by Benchmark, Geodesic Capital, Google Ventures, Index Ventures, Lead Edge Capital, Meritech Capital Partners, Radar Partners, Redpoint Ventures, True Ventures, and Workday. Visit duo.com to find out more.

In this post: Duo

Published — Oct. 18, 2017