Fundraising Fox

PropelAuth

YC W22

San Francisco, US · Founded 2021 · 5 employees · Hiring · 4 known investors

PropelAuth provides authentication and user management infrastructure for developers building B2B and B2C applications. The platform offers integrated tools for user identity, security, and relationship management to streamline the developer experience.

Also known as PropelAuth

Cloud ComputingDeveloper ToolsEnterprise SoftwareSaaSB2BIdentityUnited States of AmericaAmerica / CanadaFully Remote

Founders & leadership· Y Combinator alumni (W22)

PropelAuth was founded in 2021 by Andrew Israel.

AIAndrew Israel
Andrew IsraelinFounderHe previously worked at Palantir, SafeGraph, and Clockwise, where he built software and led teams.

Investors · 4

Company profile

researched Aug 2026

PropelAuth provides end-to-end managed authentication and authorization aimed specifically at B2B, multi-tenant software products. Organizations are treated as a first-class concept: end users can create organizations, invite coworkers, auto-join via work email domains, and manage membership settings through PropelAuth's hosted UIs. On top of this, the platform supplies role-based access control with default or custom roles defined globally or per organization, internal roles for a customer's support team, user impersonation with audit trails and alerting, user management and metrics dashboards, and detailed audit logs [0][1][2][4].

The enterprise feature set includes SAML and OIDC-based enterprise SSO with self-service configuration by the customer's own customers, SCIM provisioning, enforced MFA/2FA, password policies, per-organization session controls, restricted login methods, and API key authentication with rate limiting for both individual users and organizations [0][1][2]. More recently the company has positioned itself toward "AI-native" companies, marketing first-class MCP (Model Context Protocol) server authentication with OAuth 2.1 flows, dynamic client registration, custom scopes and token revocation, plus an integration MCP server that lets AI coding tools wire PropelAuth into an application [0][1][2][4].

PropelAuth is delivered in two forms: a fully managed cloud service and a self-hosted "Bring-Your-Own Auth" option that layers advanced auth features onto an existing provider without migration. Developers integrate via hosted pages and idiomatic client libraries across React, Next.js (App and Pages routers), JavaScript, FastAPI, Flask, Django REST Framework, Express, Node.js, Python, Go, Rust (Actix, Axum), .NET, Spring Boot, Remix and Laravel, with OAuth2/OpenID Connect available for other stacks. A separate PropelAuth Components library exposes frontend APIs and copyable components for teams that want to build fully custom login, account, organization-management and API-key UIs [0][1][2][4][5].

Founding story

Andrew Israel founded PropelAuth in 2021 after previously leading developer teams at Palantir, SafeGraph, Clockwise and other early-stage startups. He has said that conversations with B2B founders revealed startups were spending excessive time building auth from scratch or on top of services not designed for B2B requirements, which motivated building self-service UIs with organizations as a core concept, user administration tooling and framework libraries [6]. The company describes its founding premise as the idea that a great auth product gets out of the way, and that auth is about managing the relationship with a user rather than just logging them in [3][7].

Business model

Software-as-a-service sold to software companies: PropelAuth hosts and manages authentication infrastructure consumed through client libraries and hosted UIs, with a self-hosted "Bring-Your-Own Auth" variant for teams that already have an auth provider [0][1]. The company states it deliberately serves only B2B companies in order to avoid unnecessary features and complicated pricing structures [0][1].

Paid subscription plans for its cloud auth service. At seed stage the company ran a "Free till Funded" program giving its growth plan away at no cost to early-stage startups until they raised $1M, with no fixed duration and no restricted features [6]. A third-party data provider estimates annual revenue of about $1M [7].

Traction

Company materials claim thousands of B2B business customers [0][1]. A customer testimonial from Runbear states it launched an MVP within a week and scaled to 1,500 organizations in four months on PropelAuth [0][1]. At the time of the 2022 seed announcement the team was three people and hiring a Founding Backend Engineer and Head of Developer Relations [6]; a third-party profile currently lists 1-10 employees (5 identified across engineering, HR and operations) and an estimated $1M annual revenue [7].

Latest developments

Current marketing emphasizes authentication for AI-native companies and AI agents, including a newly launched first-class MCP server auth capability with OAuth 2.1, dynamic client registration, custom scopes and token revocation, and an Integration MCP Server that allows AI tools to add PropelAuth to an application [0][1][2][4]. Other recent product work highlighted on the blog covers secure user impersonation with access controls and audit logs, impersonation blocklists and direct links, and Member Audit Logs [6]. The company also offers a self-hosted "Bring-Your-Own Auth" product and a customizable components library for teams needing full UI control [0][1][5].

Full profile — market position, technology, go-to-market, geography, history, risks & controversies

Market position

Positions itself as an auth provider built exclusively for B2B multi-tenant products, arguing that most incumbent authentication providers were designed for B2C use cases and therefore do not meet B2B requirements such as organizations, per-org roles and self-service enterprise SSO [6][0][1]. It further markets itself as "the only B2B auth solution built for AI-native companies," citing MCP and AI-agent authentication support [0][1]. It claims to power auth for thousands of B2B businesses [0][1].

Organizations, per-organization roles/permissions and customer-configurable enterprise SSO are native to the data model rather than add-ons; enterprise security controls (password policies, enforced MFA, session controls, SCIM, audit logs) are configurable without code changes; and it offers both a fully managed cloud service and a no-migration self-hosted overlay on an existing auth provider. It also ships MCP/AI-agent authentication and a large set of framework-idiomatic client libraries [0][1][2].

Technology

Managed identity infrastructure exposing hosted login, signup, account and organization-management pages plus per-framework SDKs; supported protocols and features include SAML, OIDC, SCIM, OAuth2/OpenID Connect, OAuth 2.1 with dynamic client registration for MCP servers, magic links, passwordless login, 2FA/MFA, configurable session duration, and user- and organization-scoped API keys that auto-invalidate when a user or org is blocked or deleted [0][1][2][4]. A Frontend API layer (PropelAuth Components) lets developers call operations such as MFA enrollment directly and build bespoke UIs [5]. A third-party profile lists web technologies including Node.js, Express, React/Redux, Cloudflare, Segment, Ghost and Instatus [7].

Go-to-market

Developer-led self-service signup complemented by demo requests for larger buyers, supported by extensive documentation, quickstart guides, example apps (React/FastAPI, Streamlit, React/Axum, Supabase/Next.js) and migration guides from other providers [0][1][2][4]. The company said it would invest seed proceeds in developer relations to expand its user base and audience, and hired for a Head of Developer Relations role [6]. It also publishes a product/funding blog [6].

B2B software companies of all stages — from pre-launch startups needing hosted UIs and quick integration, through early-stage companies adding RBAC, impersonation and SAML, to scaling companies facing enterprise security reviews requiring MFA enforcement, SCIM and audit logs [0][1]. Referenced customers are largely startup software vendors such as Anglera, Letter AI, Runbear, Revamp, Kintsugi and Artemis [0][1].

Geography

Described at the time of its seed round as a remote-based firm [6]. A third-party business profile lists its headquarters as Redwood City, California, United States [7].

History

Founded in 2021 by Andrew Israel [6][7]. PropelAuth went through Y Combinator's Winter 2022 (W22) batch and announced a $2.59M seed round in July 2022 with participation from Tiger Global, 8-Bit Capital, Soma Capital, Y Combinator and 16 other firms and angels, alongside a "Free till Funded" program for pre-$1M startups [6]. Its investor list also includes Flex Capital, Crosstimbers Capital Group and Forward Deployed VC [3]. The product has since expanded from core B2B auth into advanced RBAC, SCIM, audit logs, user impersonation controls, API key/M2M authentication, a customizable frontend component library, a self-hosted "Bring-Your-Own Auth" offering, and MCP server authentication for AI agents [0][1][2][5].

Risks & controversies

No controversies are reported in the available sources. Sources are limited and largely first-party: customer counts ("thousands of B2B businesses") and testimonial metrics are self-reported and unverified [0][1], while revenue, valuation, headcount and headquarters figures come from an automated third-party data aggregator whose revenue and valuation numbers are explicitly labeled estimates derived from industry averages [7]. That aggregator also lists total funding as $2.6M on 2022-08-27, which differs in amount and date from the company's own $2.59M July 2022 seed announcement [6][7]. No funding activity after 2022 is documented in the sources.

Compiled by commissioned research from 8 cited public sources — announcements, filings, and press listed under research sources below.

Key figures

latest reported
Customers (self-reported)Jan 2026Thousands of B2B businesses
Estimated annual revenue (third-party estimate)Jan 2026$1M
Estimated valuation (third-party estimate based on industry revenue multiples)Jan 2026$3.2M
HeadcountAug 20267
Revenue per employee (third-party estimate)Jan 2026$167K
Team size at seed announcementJul 20223 people
Total funding raisedAug 2022$2.6M

Company-reported or press-reported figures, each dated to when it was claimed — not independently audited.

Competitors · 10

by search overlap
Auth0295 shared keywordsAuth0 is an authentication and authorization platform that secures applications, AI agents, and internal tools by providing identity management, single sign-on, multi-factor authentication, and fine-grained access control capabilities.
Descope229 shared keywordsDescope is a no/low-code customer identity and access management (CIAM) platform that lets developers build authentication and user journeys using a drag-and-drop visual editor, SDKs, or REST APIs. It supports passwordless login, MFA, SSO, SCIM provisioning, fine-grained authorization, and identity federation for consumer, business, and internal applications.
Loginradius201 shared keywordsLoginRadius provides a fully-managed customer identity and access management (CIAM) platform that handles authentication, social login, and identity management for enterprises, governments, and organizations. It serves B2B SaaS and large brands worldwide, managing billions of identities per month.
Okta195 shared keywordsOkta provides identity and access management products designed to protect the identities of workforce and customer users. The company serves enterprises and organizations that need to manage identity authentication and authorization across digital environments.
SuperTokens187 shared keywordsSuperTokens is an open-source user authentication platform that enables developers to add authentication infrastructure to their products within 15 minutes. The company provides robust user management and authentication services to engineering teams building applications, following an open core model with free base features and paid enterprise capabilities.
WorkOS182 shared keywordsWorkOS provides an API platform that enables SaaS companies to build enterprise-ready features including user management, single sign-on, directory sync, and admin portals. The platform helps developers quickly implement complex infrastructure requirements needed for adoption in large organizations.
Netezza178 shared keywordsIBM is a global technology company whose business spans enterprise software (including Red Hat, HashiCorp, and Confluent), IT infrastructure such as mainframes, servers, and storage, and IT consulting services. The company is also investing heavily in quantum computing and AI-based enterprise offerings, including its Lightwell open-source software security clearinghouse and the Anderon quantum wafer foundry.
Frontegg169 shared keywordsFrontegg provides a low-code customer identity and access management (CIAM) platform that secures user login and authentication for SaaS applications. It also offers an agentic layer that lets SaaS products expose their functionality to users through generative AI platforms.
Jwt154 shared keywordsA web-based debugger for JSON Web Tokens (JWT) that lets developers decode, verify, and generate tokens following the RFC 7519 standard for securely representing claims between parties. It serves software developers working with authentication and token-based security.
Secureauth141 shared keywordsSecureAuth provides a unified identity platform that handles authentication, authorization, and access enforcement for workforce, customer, partner, API, and AI agent use cases across the enterprise. The platform integrates adaptive MFA, passwordless authentication, behavioral AI, physical presence detection, and identity governance in a single system.

Companies competing with PropelAuth for the same Google search keywords, organic and paid, via search-intersection analysis.

Timeline · 4

launches, deals, and filings
Jan 2026
MCP server authentication

PropelAuth markets first-class authentication for MCP servers and AI agents, including OAuth 2.1 flows, dynamic client registration, custom scopes and token revocation; the feature is labeled NEW on the company homepage.

source ↗

Jul 2022
PropelAuth raises $2.59M seed round

PropelAuth announced a $2.59M seed investment following completion of the Y Combinator W22 cohort. Tiger Global, 8-Bit Capital, Soma Capital and Y Combinator participated along with 16 other firms and angel investors. Funds were earmarked for new product features, hiring, and developer relations.

$2.6M source ↗

Jul 2022
"Free till Funded" plan for early-stage startups

PropelAuth offered its growth plan for free to early-stage startups until they raise $1M in funding, with no fixed duration or feature restrictions.

source ↗

Jan 2022
Completed Y Combinator W22 cohort

PropelAuth completed the Winter 2022 batch at Y Combinator prior to announcing its seed round.

source ↗

Dated company events from announcements, filings, and press; legal rows summarize public dockets and regulator releases.

In the news

Research sources · 8

primary sources listed

8 public sources were cited for this profile; the first-party ones are listed here.

Frequently asked questions

What does PropelAuth do?
PropelAuth is a developer-focused authentication and user management platform built specifically for multi-tenant B2B products.
Who founded PropelAuth?
PropelAuth was founded by Andrew Israel in 2021.
Who are PropelAuth's investors?
PropelAuth's investors include Y Combinator, Soma Capital, Tiger Global Management, 8-Bit Capital.
Where is PropelAuth headquartered?
PropelAuth is headquartered in San Francisco, US.