Stytch Sews Up $90 Million Series B

<p><strong>SAN FRANCISCO<&sol;strong> &&num;8212&semi; Stytch&comma; a company dedicated to improving security and user experience with passwordless authentication&comma; says it has raised a &dollar;90 million Series B round of funding valuing the company at &dollar;1 billion&period; The round was led by Coatue Management LLC&comma; with participation from existing investors Benchmark Capital&comma; Thrive Capital&comma; and Index Ventures&period;<&sol;p>&NewLine;<p>Stytch plans to use the funding to continue to build tools and infrastructure that make it easier and faster to build authentication into apps and websites&period; As part of the funding&comma; Stytch also announced its acquisition of Cotter&comma; a no-code passwordless authentication platform backed by YC&period; The acquisition will combine the two companies’ technologies&comma; bringing Stytch’s vision of a passwordless world to life faster by making it even easier for developers and companies to adopt passwordless technologies&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Today&comma; more than 3&comma;500 developers are building on the Stytch platform adding email magic links&comma; SMS and WhatsApp passcodes&comma; OAuth connections&comma; one-click user invitations&comma; and embeddable magic links into user onboarding and login flows&comma;” said Reed McGinley-Stempel&comma; co-founder and CEO of Stytch&period; &OpenCurlyDoubleQuote;With every new tool we add to our platform&comma; we are continuing to improve the user onboarding experience&comma; while enhancing security and saving significant engineering time in the process&period;”<&sol;p>&NewLine;<p>When McGinley-Stempel and Co-Founder and CTO Julianna Lamb were both at <a href&equals;"https&colon;&sol;&sol;cts&period;businesswire&period;com&sol;ct&sol;CT&quest;id&equals;smartlink&amp&semi;url&equals;https&percnt;3A&percnt;2F&percnt;2Fplaid&period;com&amp&semi;esheet&equals;52533675&amp&semi;newsitemid&equals;20211118005294&amp&semi;lan&equals;en-US&amp&semi;anchor&equals;Plaid&amp&semi;index&equals;5&amp&semi;md5&equals;085c4370d8ea3e1aa153fccb3e5edd50" target&equals;"&lowbar;blank" rel&equals;"nofollow noopener" shape&equals;"rect">Plaid<&sol;a>&comma; they witnessed the shortcomings of passwords first-hand&comma; both from a security and usability perspective&period; They set out to make the authentication process easier&comma; without leaving users vulnerable to account takeover attacks&period; They founded Stytch to solve the problem&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;As we know&comma; passwords cause headaches for users and companies because people don’t like to spend the time to reset passwords&period; As a result&comma; they can pose a security threat to users and deter conversions and customer retention&comma;” said Lucas Swisher&comma; a General Partner at Coatue Management&period; &OpenCurlyDoubleQuote;We believe the world of online identity is undergoing a sea change and are impressed with Stytch’s API-driven approach to blending authentication into product experiences&period; We are excited to partner with Stytch as they pioneer us toward a passwordless future&period;”<&sol;p>&NewLine;