This isn't really a typical Venture funding, and is definitely not a "Series A". Traditionally, at this point, 1Password would probably have just gone Public, without any need for venture funding. But, why go to the hassle of doing that when you can get most of the same benefits ($$$) without any of the pain (public reporting, SOX, etc...).
The VCs at this point would be happy with a 3-4x return, because the risk is minimal - companies at this level of maturity, profitability, market dominance, and growth are highly unlikely to fail. So, if they picked up (for arguments sake) 25% of the company, giving it pre-money valuation of $800mm, all they really need to do over the next 3-4 years is build an $3.2B company, which, given 1Password's dominance/quality of product - should be relatively straightforward.
Their killer organic entry is: "Everyone" is already using them for personal password management, which means cost of training/installation/use is trivial to add the Enterprise element.
As a personal user, I consider 1Password the GitHub of password management - sure, there are lots of GitHub competitors, and you can roll your own - but, when there is one product that has completely nailed it - why bother going with anyone else.
The VCs at this point would be happy with a 3-4x return, because the risk is minimal - companies at this level of maturity, profitability, market dominance, and growth are highly unlikely to fail. So, if they picked up (for arguments sake) 25% of the company, giving it pre-money valuation of $800mm, all they really need to do over the next 3-4 years is build an $3.2B company, which, given 1Password's dominance/quality of product - should be relatively straightforward.
Their killer organic entry is: "Everyone" is already using them for personal password management, which means cost of training/installation/use is trivial to add the Enterprise element.
As a personal user, I consider 1Password the GitHub of password management - sure, there are lots of GitHub competitors, and you can roll your own - but, when there is one product that has completely nailed it - why bother going with anyone else.