SIB invests £1.3m in Glasgow password tech firm

The firm said the new investment will help it further break into the European enterprise sector with its range of solutions to combat data breaches and cyber crime.

This latest round of funding follows on from a £680k investment secured in 2013.

My1Login also announced that Scottish Water Business Stream has become a major enterprise customer, while Salesforce and RSA have become strategic partners.

Over 1000 companies rely on My1Login to secure access to their data, with a key focus on highly-regulated markets including financial services and the public sector.

The company provides next generation Identity and Access Management (IAM) solutions for Enterprise, and eliminates the need for passwords in business by providing single sign-on that works with all applications, across all devices.

Mike Newman, CEO of My1Login said: “My1Login has landed some very large contracts and we are delighted the additional investment will give us the means to accelerate our growth in Europe. With the safe-harbour framework recently being ruled as invalid, European businesses are increasingly nervous, not just about hosting data in the US, but also about working with US-headquartered software vendors who operate outside of EU data protection legislation.

“I’m pleased that My1Login has continued to attract larger levels of investment reflecting increasing confidence in our growth plans.”

The HM Government Information Security Breaches Survey found that the average cost of a data breach to a large UK organisation was £2.3m. It also found that 90% of large UK businesses suffered a data breach last year with Verizon finding that 65% of the causes of data breaches were as a result of weak employee password practices. My1Login’s Identity and Access Management Solutions eliminate this risk.

The investment in My1Login was raised from a consortium of the Scottish Investment Bank (the investment arm of Scottish Enterprise), Equity Gap, Tri Capital and Par Equity.

Kerry Sharp, head of the Scottish Investment Bank, said: “It is companies like My1Login that we are here to support and it is exciting to see the company continue to expand its offering and market reach. Scottish Enterprise looks forward to supporting My1Login’s continued growth.”

TRI Cap chairman, Rob Dick, said: “Our syndicate members are extremely impressed by the technology and IP that My1Login have developed and continue to support them while they develop their business.”