Startup Hopes Employers Sign Up for Sign-In Service

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As more software moves to the cloud, businesses are having a harder time keeping track of company-specific programs and other accounts that they dole out to new employees.

A Venice startup, which launched with $2.4 million in funding last week, aims to solve that problem.

Bitium has created a tool that consolidates passwords and accounts for various cloud software – or software accessed via Web browser instead of downloaded to a computer – into a single location.

For example, an employee could log in once through the Bitium system and open all accounts, such as Gmail, Facebook and Dropbox.

Business partners Scott Kriz and Erik Gustavson started the company last year. Their hassles at previous management jobs gave them the idea for their startup.

“It was really hard to onboard a new employee,” Kriz said of other jobs. “We’d have to go out to every application and get them user names and passwords. When they would leave the company, figuring out what they had been given access to and how to remove that access was also a big pain point.”

Businesses can use Bitium to give a new employee access to all necessary software without sharing sensitive account information or restricting access once that person leaves the company. And those employees can log into Bitium’s Web-based tool for access to all their accounts instead of visiting a number of websites and logging into each of them separately.

Bitium customers can either sign up for the free service or pay a subscription fee – either $400 or $700 a month – for premium service. The company launched with 30 customers and integration with more than 300 cloud software applications.

Kriz and Gustavson said they see Bitium as an operating system for software as a service. Once the initial Bitium product gains traction, they plan on developing more cloud software tools to build up this system.

Its latest funding round gives the 12-person company the financing to continue developing its technology while also investing in sales and marketing to add customers.

Bitium worked with Venice startup accelerator Amplify last spring and moved out of the shared workspace into its own office off Abbott Kinney Boulevard in August.

Kriz said Amplify was integral to the team’s initial fundraising efforts. Through connections at the accelerator, Bitium was able to assemble an investor roster that includes local funds Karlin Ventures and Double M Partners in addition to angels with enterprise software and software-as-a-service experience

“We were planning on just going it alone,” Kriz said. “But the guys at Amplify could offer us access to local companies that would want to adopt the software and financing from the right people. We wanted investors who were helpful.”

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