Transmit Security envisioned a future wherein passwords are a thing of the past. To make it a reality, the Boston startup had already raised a whopping $543 million for its Series A Funding.
According to TechCrunch, the extent of the funding is the largest in any cybersecurity startup. It was made possible mainly by General Atlantic and Insight Partners, alongside additional investments from SYN Ventures, Vintage, Artisanal Ventures, Cyberstarts, and Geodesic.
On top of that, the funding raised the valuation of Transmit Security to the tune of $2.3 billion. The company vowed to use it for its global expansion.
Additionally, it will help in planting their prominence in key areas around the world.
The hefty funding and valuation come at a time wherein cybersecurity has become a ubiquitous concern in all industries. It is a result of the recent large-scale cyberattacks that flooded recent headlines.
For instance, Colonial Pipeline shut down after a ransomware group accessed its system by infiltrating its private network. As a result,the largest pipeline in the United States was deemed useless, leading to price hikes, and supply shortage — all due to a single compromised password.
Transmit Security and a Passwordless World
Transmit Security claimed that companies and other organizations are losing millions of dollars every year because of relatively weak passwords.
VentureBeat reported that it has already cost the gloabl economy a total of $2.9 million every minute. It adds that majority, or 80%, of hacking commence due to lousy login credentials.
Interestingly, The labor cost of resetting a password for a single user is as expensive as $70.
So, we get why Transmit hates it so much that it wants a world that has nothing to do with it. With that, the company worked on a biometric-based authenticator to kill passwords entirely. It is by far the first "passwordless identity and risk management solution," as per TechCrunch.
To be exact, it is a mobile authenticator without an app. It could perform biometrics with the availability of QR codes alone.
Transmit Security and Businesses
Transmit has already encouraged some business giants to let go of passwords. Household brands such as Lower, UB, and Santander have embraced the new technology.
The security startup further boasted that their fresh system welcomes about 9,000 transactions per second. As such, the authenticator could accommodate large-scale multinational companies. Not to mention that it also saves time as every authentication only takes 2 seconds.
The company claimed that it is significantly faster than using a password, which takes up to a minute.
Venture Beat added that Transmit has been trying to create a passwordless world since it debuted in 2015. Also, its founders are not new faces in the cybersecurity industry as they have previously sold their security company to IBM.
Meanwhile, it is not the first time that a company envisioned killing off passwords. Google is also planning to turn on two-factor authentication by default to all users.
This article is owned by Tech Times
Written by Teejay Boris