The wearable authentication specialist Token has landed $13 million in Series B funding. The round was led by Grand Oaks Capital, and coincides with the appointment of John Gunn as Token’s new CEO.
Token plans to use the fund to advance the development of its wearable authentication solution, and to try to generate more interest in that solution amongst potential clients. The company is the developer of a biometric ring that monitor’s the wearer’s vital signs to verify their identity. In that regard, the ring is comparable to the wrist-worn Nymi Band, at least insofar as it enables passwordless multi-factor authentication in a frictionless form factor.
According to Token, the ring is an effective security tool for organizations that are struggling to deal with fraud and a rising number of ransomware attacks. Gunn noted that ransomware attacks more than doubled in 2021, and that the average attack now carries a $1 million price tag for the targeted organization. The Token ring eliminates the weaknesses associated with password-based credentials, and in doing so helps guard against phishing, social engineering, and various kinds of malware.
For his part, Gunn joins Token following a stint as the Chief Revenue Officer for OneSpan, which also specializes in cybersecurity. Before that, he served as either the President or the General Manager for a number of tech companies ranging from VisionTek to Aladdin Knowledge Systems.
“Authentication is absolutely broken,” said Gunn. “A bulletproof approach to user authentication that works with existing solutions, greatly enhances security, and is the ultimate in user convenience is certain to be a winner.”
“We have great faith in the Token team and are confident in their ability to be a leading provider of authentication and cybersecurity solutions that have great ROI,” said Grand Oaks Chief Investment Officer David Bovenzi. “Token has a short path to revenue and then rapidly scaling the business, and cybersecurity has always been a recession-proof business.”
Nymi has reported that there is growing support for wearable authentication solutions in the modern workplace. Companies like Oura are also using rings for health tracking applications.