Token, a company that provides wearable authentication solutions, has just announced a $30 million financing raise to support its product development and strategic growth objectives. This comes as phishing and ransomware attacks continue to increase and are expected to become more effective and damaging with the introduction of artificial intelligence.
The financing is provided by Grand Oaks in the form of a $20 million secured note and a $10 million convertible note, which will provide financing for inventory and working capital funding to support the company's overall growth and future product development.
Token's next-generation MFA solution is a biometric wearable that stops phishing attacks and data breaches. The Token smart ring is the only authentication device that solves the vulnerabilities in bring your own device (BYOD) approaches and legacy MFA products, and has already won five industry awards for innovation and security. With the rise of remote work and the need for secure authentication, Token's product is well-positioned to address market needs.
According to Token CEO John Gunn, "People are the leading cause of data breaches, and you see this play out almost daily as new ransomware attacks are revealed to have been caused by the human failings inherent in legacy MFA. Our product is engineered to be implemented in just hours and can be set up by end users in minutes to help CISOs and sysadmins quickly address this issue."
The financing from Grand Oaks is a great vote of confidence for Token, which has seen great strides in addressing market needs. Grand Oaks Capital Chief Investment Officer David Bovenzi said, "Token checks all the boxes of a great investment for Grand Oaks – a large addressable market and a disruptive technology – which makes continued investment an easy decision for us. We have also seen great strides made by the Token team in addressing market needs, which is why we are confident in investing additional working capital to accelerate the company's growth."
With the funding, Token can continue to develop and improve its product, bringing cutting-edge technology to the market and helping to secure individuals and businesses against the increasing threat of cyber attacks.