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Keyfactor, a machine identity management provider, has reached a $1.3 billion valuation after securing a minority investment from the Sixth Street Group. The Cleveland-based company plans to use the funds to address the rising demand for technology that enhances device security and simplifies public key infrastructure. Over the past three years, Keyfactor has demonstrated a growth rate exceeding 70%, with its technology trusted by over 1,500 organizations.
Keyfactor’s Recent Valuation Boost
A machine identity management provider, previously led by a Tricentis executive, has reached a valuation of $1.3 billion. This significant milestone was achieved after Keyfactor secured a minority investment from the Sixth Street Group.
Addressing the Demand for Enhanced Security
Cleveland-based Keyfactor has expressed that the newly acquired funds will cater to the growing market demand for technology that not only secures devices but also simplifies public key infrastructure and streamlines certificate life cycle management. With the emergence of machine identities, the impending threat of quantum computing, and the swift surge in connected devices, businesses are in a race to efficiently secure digital identities.
Keyfactor’s Impressive Growth
Over the past three years, Keyfactor has showcased a compound annual growth rate exceeding 70%. Furthermore, more than 1,500 organizations rely on Keyfactor’s technology to establish and sustain digital trust. The company’s CEO, Jordan Rackie, emphasized the importance of the investment from Sixth Street, stating it will propel their business into a phase of hypergrowth.
The Value Sixth Street Growth Adds
Sixth Street Growth, known for its investments in mid- and late-stage technology companies, has a history of collaborating with management teams to boost both organic and inorganic growth. Their portfolio includes notable names in the cybersecurity domain such as Kaseya, AvePoint, and Nasuni. Alex Katz, the Managing Director at Sixth Street Growth, highlighted Keyfactor’s unique position in the market, praising its ability to manage digital identity at scale.
Keyfactor’s Evolution and Expansion
Established in 2001, Keyfactor underwent a rebranding in November 2018, transitioning from Certified Security Solutions to its current name. Following this, the company secured $77 million from Insight Partners, furthering its market expansion. By April 2021, Keyfactor had received a $125 million growth investment from the same partner and merged with PrimeKey, marking its transformation into the industry’s premier machine identity management platform.
Insight Partners’ Continued Support
Insight Partners has been a consistent supporter of Keyfactor, with its Managing Director, Thomas Krane, expressing confidence in the company’s trajectory. He commended the leadership of Jordan and his team and expressed anticipation for the company’s promising future.
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