Token raises $30M to fuel growth and development of biometric authentication wearable
Token has announced a $30 million funding round to support the product development of its biometric wearable for passwordless FIDO2-compliant authentication.
The investment comes from private equity and venture capital firm Grand Oaks Capital, in the form of a $20 million secured note, plus a $10 million convertible note. The funds will be used for inventory and working capital to support overall growth and future product development.
Token’s wearable is a next-generation multi-factor authentication solution which is easy to implement, and stops phishing attack and data breaches, according to the announcement.
The Token ring, originally launched in 2017, is activated with fingerprint biometrics, and provides proximity security through NFC connectivity and secure credentials with an EAL5+ certified secure element.
“People are the leading cause of data breaches, and you see this play out almost daily as new ransomware attacks are revealed to have been caused by the human failings inherent in legacy MFA,” says Token CEO John Gunn. “Our product is engineered to be implemented in just hours and can be set up by end users in minutes to help CISOs and sysadmins quickly address this issue.”
The company says its wearable technology avoids the vulnerabilities of bring-your-own-device authentication approaches and legacy MFA products.
“Token checks all the boxes of a great investment for Grand Oaks – a large addressable market and a disruptive technology – which makes continued investment an easy decision for us,” states Grand Oaks Capital Chief Investment Officer David Bovenzi. “We have also seen great strides made by the Token team in addressing market needs, which is why we are confident in investing additional working capital to accelerate the company’s growth.”
According to Crunchbase, Token had previously raised $22.9 million in funding, including from a series B round last year.