Ann Arbor-based start-up Duo Security said Wednesday it has raised a record-setting $70 million in new venture capital -- translating into a market value for the firm of more than $1 billion.

Topping the $1 billion valuation marks a huge milestone for southeast Michigan's growing entrepreneurial ecosystem and puts Duo Security into a league with other "unicorns," the nation's fastest growing and most valuable tech startups.

“Duo Security’s $70 million raise is the largest round of venture-capital that any company has raised in Michigan history," said Emily Heintz, associate director of the Michigan Venture Capital Association.

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"And probably more exciting on the national scale, Duo Security’s $1.17 billion valuation is the highest valuation we have seen of any venture-backed company in Michigan."

The previous time a Michigan startup firm saw its market valuation hit $1 billion was in 2003, when Pfizer Inc., the world's biggest drugmaker, paid $1.3 billion for Ann Arbor-based Esperion Therapeutics, the creator of the cholesterol medicine Lipitor.

The latest milestone delivers further proof that Michigan's entrepreneurial ecosystem, the network of startups, investors, tech-savvy workers, and business accelerators and talent portals like TechTown in Detroit and Ann Arbor SPARK, continues to grow.

While still small compared to Silicon Valley, the Boston area, and other entrepreneurial hotspots, Michigan's entrepreneurial network remains the state's best bet to transition from the aging industrial economy of the 20th century to a new tech-oriented economy that will dominate the 21st century.

Duo Security provides cyber security products to a host of clients worldwide. Founded in 2010, Duo currently has more than 500 employees worldwide, with 350 based in Ann Arbor. It has raised $119 million in total funding.

Duo said it now serves more than 10,000 customers and protects more than 300 million computer logins worldwide every month.

The new $70 million in financing came from venture investors Meritech Capital Partners and Lead Edge Capital, among others.

Duo helps defend organizations against cyber thieves with its “Trusted Access” products that verify the identity of users and the health of their devices before granting them access to data and applications.

"Cybersecurity has become the biggest geopolitical problem of our time," said CEO Dug Song. "We are at a point where every organization in every industry is challenged with the overwhelming cost and complexity of securing a modern workforce."

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Song said the firm will use the new venture cash to innovate new products, expand its global reach and accelerate its growth.

Duo Security operates offices in Austin, Texas; San Mateo, California; and London, England.

Contact John Gallagher: 313-222-5173 or gallagher@freepress.com. Follow him on Twitter @jgallagherfreep.