US-based authentication services provider Duo Security secured $70m in series D capital on Wednesday from investors including human resources software producer Workday.
The round was co-led by Meritech Capital Partners and Lead Edge Capital, with further participation from Geodesic Capital, Index Ventures, Redpoint Ventures and True Ventures. It valued Duo Security at $1.17bn post-money.
Duo Security has created a cloud-based user verification platform that uses two-factor authentication to confirm a user’s identity before allowing them to log in to a service.
Two-factor authentication works by sending a unique, time-limited code to a user through a mobile app, text message or phone call that needs to be entered in addition to a password. The technology is commonly used to stop fraudulent login attempts.
Duo Security’s clients include social media platform Facebook, consumer goods marketplace Etsy and film studio Paramount Pictures. The money will support international expansion efforts and the development of Duo’s technology.
Lorrie Norrington, operating partner for Lead Edge Capital, will join Duo’s board of directors, while Meritech co-founder Rob Ward will join as an observer. The company has now raised $119m in total funding.
GV, the early-stage investment vehicle of internet technology conglomerate Alphabet, participated in Duo’s $5m series A round in 2012 alongside True Ventures and Resonant Venture Partners.
Duo then received $12m in a 2014 series B round led by Benchmark, with contributions from GV, True Ventures and Radar Partners, before the series B investors joined Redpoint for a $30m series C round the following year.