Stormpath, the first easy, secure user management and authentication service for developers, announced the completion of $8.2 million in Series A funding with New Enterprise Associates and Pelion Venture Partners leading the round with the participation of Flybridge Capital Partners.
“We’re entering the age of plug-and-play architecture, where developers can easily and securely offload commodity infrastructure – like user management, billing, and logging – to API services,” said Alex Salazar, CEO of Stormpath. “Developers don’t want to waste time rebuilding user login for every new app – it’s critical to the business, but not core to their product, and getting it wrong is expensive. Sony got caught on a totally preventable mistake, and it cost them $171 Million.”
Along with the completion of the Series A funding, Stormpath also exits its beta period and launched the general availability of the service with over 1,000 users.
Stormpath was founded in 2011 aiming to address the primary hurdles of cloud-based companies: authentication and management of a large user base. Before this round of funding, it received a seed round from NEA and Flybridge, and an angel round led by Andy Rachleff, co-founder of Benchmark Capital and CEO at WealthFront.
Stormpath is a fast, straightforward way for developers to safely store user data and manage access control to apps. A simple API integration reduces development and operations costs for developers while also protecting users. Stormpath offloads simple tasks such as authentication, account management, and password reset which allows development teams to focus on core business features.
“Stormpath has built an impressive team and is at the heart of cloud infrastructure and developer-driven IT,” said Peter Sonsini, general partner at NEA. “We’re excited by the wave of developer services, and because user management is necessary for every application, every developer can use the service.”
According to a Forrester Research, the Identity Management market will grow to $12 billion in 2014 as cloud adoption grows at 24 percent annually. Almost half of applications built in the cloud require robust user management and security infrastructure and this opens up the market wide open for Stormpath. Stormpath provides a secure service that is simple for development teams to deploy and maintain.
“Just as developers can use APIs to automate their payment processing with PayPal or messaging with SendGrid and Twilio, they can securely manage and authenticate users with Stormpath,” said Les Hazlewood, Stormpath CTO and PMC Chair of Apache Shiro. “The Stormpath API was painstakingly built from the ground up to cater to developers and simplify their lives. The more they can offload to APIs like Stormpath, the faster they can build their applications.”