Passbolt, an open-source password manager designed specifically for small and midsize businesses (SMBs), has secured an $8 million seed funding round. The company aims to address the unique security and collaboration needs of business teams, offering solutions that go beyond traditional consumer-oriented tools like Bitwarden and 1Password. In the future, Passbolt also plans to expand its offerings to enterprise customers.
Founded in 2017 by CEO Kevin Muller, alongside co-founders Rémy Bertot and Cédric Alfonsi, Passbolt was built to solve the shortcomings of conventional password managers in team environments. Muller, who previously led the e-learning platform Click on French and a web development consultancy in India, saw an opportunity to develop a tool that prioritizes collaboration, security, and control.
Passbolt’s foundation is partly based on KeePass, a popular open-source password manager. However, Muller points out that KeePass was never designed with team collaboration in mind, as it relies on a single static file to store credentials. While this file can be shared, it lacks critical features such as access control, audit logs, and the ability to revoke credentials when needed.
“We wanted to create a solution that offered more collaboration, security, and granular control over credentials,” said Muller. “Businesses need a way to install it on their own infrastructure, ensure interoperability, and securely share passwords and secrets.”
Over the years, Passbolt has introduced a range of features to meet these needs, including native desktop applications, password expiration and rotation capabilities, two-factor authentication tools, and role-based access controls. A key upcoming feature is support for passkey management.
In the long term, Passbolt aims to compete with enterprise-focused Privileged Access Management (PAM) solutions like CyberArk, providing organizations with a flexible, scalable alternative.
Passbolt Leading Product for Password Manager – Hero
Despite achieving profitability in mid-2024, Passbolt decided to raise funds to accelerate growth and meet increasing customer demand for new features. The seed round was led by Netherlands-based Airbridge Equity Partners, with participation from existing investors such as Expon Capital’s Digital Tech Fund, ScaleFund, Seeder, Dedicated, Bondi Capital, Carricha Capital, and LBAN. Additionally, angel investors Christophe Bianco, co-founder of Excellium Services, and Xavier Buck, co-founder of Datacenter Luxembourg, also contributed.
Rick van Boekel, managing partner at Airbridge Equity Partners, emphasized Passbolt’s appeal, stating, “Legacy password managers like KeePass and Bitwarden, along with PAM solutions such as CyberArk, don’t fully address the needs of today’s distributed and agile teams. Passbolt’s strong organic growth across industries highlights the demand for a more collaborative, enterprise-ready solution. Their impressive SaaS metrics demonstrate high user satisfaction.”
Headquartered in Luxembourg with a team of around 30 employees, Passbolt continues to evolve to meet the security and collaboration needs of modern businesses.