Exclusive: Meldium nets $1M to make sense out of password management

Startup Meldium now has $1 million in seed funding to help ease password-management headaches for businesses.
And that’s no easy task. Speaking from experience, I have about four or five outside accounts — for photos, for site tracking, etc., for work as well as personal Twitter, Facebook (s fb) and other accounts — and I probably use fewer apps than most of my colleagues. Worse, all those passwords are not-so-securely stashed on Post-it notes and/or a spreadsheet. That’s a problem, especially for younger companies that grew up on web applications like GitHub, Box, Asana and Dropbox.
For older companies nurtured on client-server applications, passwords and access rules typically sit on a single server — a mode that does not work so well now. “We aggregate all that — all the user and account data via  API connections to those services,” in an access-management layer, co-founder Boris Jabes said in an interview.
“We see people just love using more apps, but that gets more and more confusing. It’s not just about the passwords but who has access to what,” said Jabes, who spent seven years at Microsoft’s (s msft) tools group. His co-founders Anton Vaynshtok and Bradley Buda are both Amazon(s amzn) alums.
Meldium, which was founded in Seattle but is now in San Francisco,  lets department managers grant access to a given app to an intern or freelancer with the click of a button, but without sharing the underlying password. That has obvious ramifications for security. And, when an employee leaves the company, the admin can just disable or delete her corporate accounts without touching her personal accounts.
The service was in beta till March, and the company then started charging. About 10 percent of 800 companies using the service pay to do so, Jabes said. Meldium has a free offering for small teams. The company competes with Okta and Microsoft in some respects, but Jabes maintains its cloud-first design better suits it for startups and growing younger companies.
Investors including Draper Associates and Founders Co-op provided the seed funding. Meldium was also part of last winter’s Y Combinator class.
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