Cloud identity management startup snags $16.5 million in financing

San Francisco-based Okta has raised more than $26 million in venture capital

Okta, a San Francisco-based startup specializing in on-demand identity and access management service for enterprises using cloud computing, has closed a $16.5 million round of venture financing.

Founded by former executive Tom McKinnon and launched in January, Okta now has raised more than $26 million in financing. New investors Greylock Partners and Khosla Ventures contributed to the latest round, joining previous investors Andreessen Horowitz and FLOODGATE.

In a press release announcing the funding, Okta said it would use the money to "help fuel an aggressive growth strategy as the company continues to make cloud application adoption easier than ever for both enterprise IT and their end users."

Okta's Cloud Services Platform is designed to provide identity management in the cloud so that enterprises can securely deploy web-based applications remotely, while its Application Network includes pre-integrated business applications from Cisco, Google, Microsoft, Oracle, and other vendors.

Customers include Pandora Media, AMAG Pharmaceuticals and Enterasys.

"We truly believe that leveraging the cloud is simply better for business -- it enhances productivity, cuts costs and opens up new opportunities. We're making cloud applications more accessible and easier for enterprises to manage -- something our customers are demanding," McKinnon said in a statement.

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