Storj Labs Raises $3 Million in Seed Financing
Storj Labs, a blockchain-based distributed cloud storage provider, has raised $3 million in a seed financing round to advance its open source, distributed cloud storage platform, Storj. The offering was oversubscribed and included angel investors from venture capital firms, Google Ventures, Qualcomm Ventures and Techstars, as well as members of the technology security space, including Cockroach Labs, Ionic Security, and Pindrop Security amongst its early backers.
Using blockchain technology and cryptography to secure files, Storj provides decentralized, end-to-end encrypted cloud storage solution to. As an open source project, Storj brings together a growing community of developers who are committed to building tools, applications and products that are private by design.
Data centres serve as the hub of cloud storage capabilities for cloud giants like Amazon, Microsoft, and Google, but data centres can prove too costly for developers, providers and users, with an even higher cost for data failures and security breaches. From physical servers and networking equipment to other infrastructure demands like electricity, cloud service providers require billions of dollars to be spent to maintain and develop.
By creating a shared community of ‘farmers’ – users who rent out their spare hard drive space and bandwidth – Storj creates a peer-to-peer network more secure and efficient than traditional data centre-based cloud storage solutions. Alongside the platform is a cryptocurrency, and suite of decentralized applications which uses blockchain features like a transaction ledger, public/private key encryption, and cryptographic hash functions for security so that users don’t have to assume the risk of censorship or hacking as with data canters.
Shawn Wilkinson, co-founder, CEO and CTO of Storj Labs, remarked: “Storj aims to revolutionize cloud storage by putting the user back in control over their devices and their data. The decentralized aspect of Storj means there are no central servers to be compromised, and because of the use of client-side encryption, only the end users have access to their unencrypted files and encryption keys.”
Currently Storj has a community of 7,500+ farmers and over 15,000 API users worldwide. Storj Labs has opened a channel partnership with Heroku, a cloud platform that enables developers to build, run, and operate applications entirely in the cloud. By joining forces with Heroku, Storj can provide developers with a distributed object storage solution with encryption, optimal speed and easy implementation.
Storj Labs was also recently awarded a grant by the Utah Governor’s Office of Economic Development (GOED) to help advance its technology. The funding is part of a grant program hosted by the GOED’s Technology Commercialization and Innovation Program which will also give Storj access to free mentorship at BoomStartup, a start-up accelerator founded in 2010.
Managing Partner at GVA Vestor.in, Pavel Cherkashin said: “Storj is a unique market phenomena. It sets new standards of unit economics for distributed data storage.”
Simon Dixon, CEO of BnkToTheFuture.com, commented: “As a seed investor, we were more than happy to join the next round for Storj with a great line up of co-investors. We want storing files to be cheaper, faster and more secure and the progress the Storj team has made towards that mission has been phenomenal to watch. We are looking forward to putting more and more of our documents on the Blockchain thanks to Storj.”