San Antonio—Data security firm Jungle Disk has acquired TeamPassword, a small startup that provides password management services for small- and mid-sized businesses, particularly digital advertising and marketing firms that require numerous logins. Terms weren’t disclosed.
TeamPassword was founded in Baltimore, MD, in 2012 by Brian Sierakowski, the company’s CEO. He participated in a Startup Weekend competition, a Techstars event in which he beat out 14 other teams by developing a basic version of the company’s current software. (None of that original version exists in the current software, Sierakowski says, but still.)
The company says it has thousands of customers and more than 9,400 people using its software. Those people average around 147 passwords for their various business operations, from Google accounts to social media networks to customer relationship management platforms, Sierakowski says. TeamPassword helps those businesses keep track of the passwords for the various accounts—particularly when those passwords vary, as they should, or need to be changed. It also allows customers to share passwords through its platform with various new employees or clients.
The prevalence of data breaches and hacks makes a service like this valuable for any business trying to stay secure by avoiding weak or stolen passwords, says Bret Piatt, Jungle Disk’s CEO. He says TeamPassword will add value to Jungle Disk’s services for its existing customers, who use it for data backup and cybersecurity protection. The convenience of a password management tool could help Jungle Disk attract more clients.
“In order for folks to embrace security, it also needs to improve their productivity and make their lives easier,” Piatt said in a phone interview. “If it just makes their life safer, they’re not very likely to do it.”
There are countless other software products that aim to help both consumers and businesses manage passwords. Jungle Disk was interested in TeamPassword because it is targeting mid-sized businesses, as Jungle Disk does, Piatt says.
Team Password has largely targeted sales and marketing companies that want to regulate which employees or clients can access certain accounts. But Jungle Disk may seek to expand beyond that customer base as it markets the startup’s password tools. Jungle Disk, whose primary services include data storage and cybersecurity measures, has already been broadening its offerings to customers through another acquisition. In December, it bought SafetyNet, an online data backup service for users of QuickBooks Online.
Sierakowski is TeamPassword’s only full-time employee and plans to move to San Antonio from Baltimore later this year.
