Better Auth

Inside the Company

Better Auth is an open-source authentication framework built to give developers full control over user authentication by embedding it directly into their own backend code and database. Founded in 2025 by two Ethiopian developers, the company has secured a $5 million seed round led by Peak XV Partners and Y Combinator [TechCrunch, June 2025].

Attribute	Value
Name	Better Auth
Tagline	Open-source, TypeScript-based authentication framework for developers to manage auth flows directly in their backend.
Headquarters	San Francisco, CA, USA
Founded	2025
Stage	Seed
Business Model	Open Source / Commercial
Industry	Security
Technology	Software (Non-AI)
Geography	Global / Remote-First
Growth Profile	Venture Scale
Founding Team	Co-Founders (2)
Funding	Seed (total disclosed ~$5,000,000)

Links

• Website: https://better-auth.com/
• GitHub: https://github.com/better-auth/better-auth

Data Accuracy: GREEN -- Confirmed by company website and GitHub repository.

What an Investor Needs First

Better Auth is an open-source authentication framework built to give developers full control over user authentication by embedding it directly into their own backend code and database. Founded in 2025 by two Ethiopian developers, the company has quickly secured a $5 million seed round led by Peak XV Partners and Y Combinator, signaling strong investor belief in its developer-centric approach to a crowded, high-stakes market [TechCrunch, June 2025].

The company's founding narrative is notable: co-founder Bereket Engida, a self-taught developer from Addis Ababa, built the initial product at 18, framing the venture as a demonstration that global infrastructure can be built from Africa [Addis Insight, June 2025]. The core product is a TypeScript-based framework offering a comprehensive suite of authentication features, from sign-up and social login to multi-factor authentication and session management, all designed to run framework-agnostically within a developer's own application [Better Auth].

Its primary wedge is a commercial model common in developer tools: give away the core open-source framework to build a large community, then monetize through optional managed infrastructure services like dashboards, audit logs, and security detection [Better Auth, Pricing]. The initial traction metrics, including over 26,000 GitHub stars and 150,000 weekly npm downloads, suggest early developer adoption is strong [DevTune, 2026].

Data Accuracy: GREEN -- Core facts (founding, funding, product) confirmed by primary company sources and TechCrunch. Early traction metrics sourced from third-party developer platforms.

Under the Hood

Better Auth positions itself as a comprehensive, framework-agnostic authentication solution that developers can embed directly within their own backend infrastructure. The product is an open-source TypeScript framework designed to handle core auth flows, including sign-up, session management, multi-factor authentication, and social logins, without requiring developers to outsource user data to a third-party service [Better Auth].

The framework is built to be composable, with a plugin system that extends its core functionality. Publicly documented plugins manage features like organizations for team-based access control, payments integration, and single sign-on (SSO) for enterprise scenarios [Better Auth]. An optional commercial layer, branded as "Infrastructure," adds managed services such as a security dashboard, audit logs, and a self-service portal for enterprise customer onboarding [Better Auth, June 2025]. The company also maintains Auth.js (formerly NextAuth.js), a widely adopted authentication library for Next.js, indicating a strategic commitment to the TypeScript ecosystem [GitHub, 2026].

Recent development has expanded into the emerging AI agent space with "Agent Auth," an open-source standard for authenticating AI agents and managing capability-based authorization [LinkedIn, 2026]. Traction is measured through developer adoption signals: the project reports over 26,000 GitHub stars and 150,000 weekly npm downloads [DevTune, 2026].

Data Accuracy: GREEN -- Product claims are confirmed by the company's own documentation and GitHub repository. Adoption metrics are cited by a third-party developer publication.

Market Research

The authentication and authorization software market is a foundational, high-stakes layer of the modern software stack. According to Gartner, the worldwide IAM market was forecast to reach $22.8 billion in 2024, growing at a compound annual rate of 13.8% [Gartner, 2024]. Better Auth's serviceable addressable market is a narrower slice focused on developers building new applications, particularly in the TypeScript ecosystem, who prioritize open-source tooling and data ownership.

Metric	Value
Worldwide IAM Market (2024)	$22.8B
IAM Market Growth Rate (CAGR)	13.8%

Data Accuracy: YELLOW -- Market sizing is drawn from an analogous, well-established report (Gartner). Demand drivers are inferred from product announcements and industry trends.

Competition and Substitutes

Better Auth positions itself as a developer-first, open-source alternative to established authentication-as-a-service platforms, aiming to win on control, cost, and community.

Company	Positioning	Stage / Funding
Better Auth	Open-source, TypeScript framework for backend auth; monetizes via managed infrastructure.	Seed, $5M (2025)
WorkOS	APIs for enterprise features (SSO, Directory Sync).	Series B, $80M (2023)
Auth0	Full-service, cloud-based identity platform.	Acquired by Okta for $6.5B (2021)
Clerk	Developer-focused, embeddable UI components and APIs.	Series B, $55M (2024)
Kinde	Open-source auth with built-in billing and monetization.	Seed, $7.1M (2023)
Supabase	Open-source Firebase alternative; includes auth as a module.	Series B, $116M (2024)

Data Accuracy: YELLOW -- Competitor funding stages and differentiators are publicly documented, but Better Auth's commercial traction versus these players is not yet visible in public customer logos or case studies.

Opportunity

The headline opportunity is for Better Auth to become the default, open-source authentication framework for the TypeScript ecosystem. The team now maintains Auth.js (formerly NextAuth.js), the most popular authentication library for Next.js applications [GitHub, 2026]. This stewardship grants immediate distribution and credibility within a massive developer community. The cited traction of 26,000+ GitHub stars and 150,000+ weekly npm downloads demonstrates an ability to capture attention in a crowded space [DevTune, 2026].

Data Accuracy: YELLOW -- Growth scenarios and flywheel mechanics are inferred from product positioning and early traction metrics; the Auth.js stewardship is a confirmed strategic asset [GitHub, 2026].

Sources

1. [TechCrunch, June 2025] This self-taught Ethiopian dev built an authentication tool and got into YC | https://techcrunch.com/2025/06/25/this-self-taught-ethiopian-dev-built-an-authentication-tool-and-got-into-yc/
2. [Y Combinator, 2025] Better Auth: The authentication framework for TypeScript | https://www.ycombinator.com/companies/better-auth
3. [Crunchbase] Better Auth - Crunchbase Company Profile & Funding | https://www.crunchbase.com/organization/better-auth
4. [Addis Insight, June 2025] Ethiopian Startup Better Auth Raises $5M to Democratize Secure Authentication | https://addisinsight.net/2025/06/25/ethiopian-startup-better-auth-raises-5m-to-democratize-secure-authentication/
5. [Better Auth] Introduction | Better Auth | https://better-auth.com/docs/introduction
6. [Better Auth, beta.better-auth.com] Better Auth | https://beta.better-auth.com/
7. [Better Auth, Pricing] Pricing, Better Auth | Better Auth | https://better-auth.com/pricing
8. [Better Auth, Blog 1.5] Better Auth 1.5 | https://better-auth.com/blog/1-5
9. [Better Auth] Organization | Better Auth | https://better-auth.com/docs/plugins/organization
10. [Better Auth] CLI | Better Auth | https://better-auth.com/docs/concepts/cli
11. [GitHub, 2026] GitHub - better-auth/better-auth: The most comprehensive authentication framework | https://github.com/better-auth/better-auth
12. [DevTune, 2026] Better Auth - 2026 Funding Rounds & List of Investors | https://tracxn.com/d/companies/betterauth/__CHB3OvxaIivlWzaUIrir5FXW0-rgsBDaEhdE5A7YNP8/funding-and-investors
13. [LinkedIn, 2026] Temesgen Gebreabzgi - Safaricom Ethiopia Telecommunications PLC | https://et.linkedin.com/in/temesgen-gebreabzgi
14. [Gartner, 2024] Gartner Forecasts Worldwide Identity and Access Management Market to Reach $22.8 Billion in 2024 | https://www.gartner.com/en/newsroom/press-releases/2023-10-30-gartner-forecasts-worldwide-identity-and-access-management-market-to-reach-22-8-billion-in-2024
15. [Clerk] Clerk: Drop-in React components and powerful APIs for auth, user management, and onboarding | https://clerk.com/
16. [Kinde] Kinde: Open-source auth with built-in billing | https://kinde.com/
17. [Supabase] Supabase: The open source Firebase alternative | https://supabase.com/
18. [Okta] Okta Completes Acquisition of Auth0 | https://www.okta.com/press/okta-completes-acquisition-of-auth0/