Storj Labs Raises $3 Million in Seed Funding

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Storj Labs, a distributed cloud storage provider, has raised $3 million in an oversubscribed seed financing round to advance its open source, distributed cloud storage platform, Storj (pronounced “storage”).

“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,” adds Simon Dixon, CEO, BnkToTheFuture.com.

Angel investors from venture capital firms, Qualcomm Ventures and Techstars, as well as industry leaders in the technology security space, including Cockroach Labs, Ionic Security, and Pindrop Security, are among the early backers.

Storj provides the first decentralized, end-to-end encrypted cloud storage solution to use Blockchain technology and cryptography to secure files. As an open source project, Storj unites a large and growing community of developers who are committed to building tools, applications and products that are private by design.

Data centers serve as the hub of cloud storage capabilities for cloud giants like Amazon, Microsoft, and Google. But data centers come with a high price tag 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 spend billions of dollars every quarter just to maintain or grow their service offerings.

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 that is orders of magnitude more secure, up to 10x faster and 50 percent less expensive than traditional data center-based cloud storage solutions. A platform, cryptocurrency, and suite of decentralized applications, Storj allows users to store data in a secure and decentralized manner. It 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 centers.

“Storj aims to revolutionize cloud storage by putting the user back in control over their devices and their data,” said Shawn Wilkinson, co-founder, CEO and CTO of Storj Labs. “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.”

Today Storj touts a community of more than 7,500 farmers and more than 15,000 API users worldwide. Storj Labs has cemented 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 effortless 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 (TCIP) which will also give Storj access to free mentorship at BoomStartup, a startup accelerator founded in 2010.

“Storj is a unique market phenomena. It sets new standards of unit economics for distributed data storage,”  said Pavel Cherkashin, Managing Partner, GVA Vestor.in

Storj has surpassed 15,000 API users who leverage the Storj network for secure and decentralized data storage. Interested in earning money for your extra hard drive space? Become a Storj farmer! For developers looking to join the technical community, they have plenty of resources and documentation to help you start contributing.

 

About Richard Kastelein

Founder, Publisher and Editor in Chief of industry leading online publication, Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC. Kastelein is also an advisor with a number Blockchain startups doing ICOs including Humaniq.co where hs is interim CMO, DECENT.ch, Inchain, Chronobank, eGaas and others. He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List.

As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven, Bucharest, Nairobi, Tel Aviv, Manchester, Brussels, Barcelona etc, where he helped spread the cause for Blockchain technology and cryptocurrency and, consequently, has built a notable network in the scene.

He’s also a director of a Dutch foundation called The Hackitarians and has run innovation events in London, San Francisco, Berlin, Amsterdam and other cities around the world on topics such Blockchain, Health, Energy, Internet of Things, AI etc.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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