OwnCloud, the open-source challenger to Box, nets $2.5M

If you use popular cloud storage and sharing services like Box and Dropbox, you trust your sensitive information to third party data centers.

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OwnCloud, the startup that positions itself as the open-source alternative to Box, is the newest contender in the cloud storage wars.

To expand into new verticals and grow its user-base, the Lexington, Mass. based startup pulled in $2.5 million from venture capital firm, General Catalyst. The firm’s Managing Partner Larry Bohn will join the company’s board of directors.

OwnCloud claims to give its 650,000 users a drop dead easy tool and more control over their data. Its server is typically deployed on a company’s servers or trusted service provider’s servers, and integrates well with existing security, storage, monitoring and reporting tools.

Young companies are increasingly positioning themselves this way in the wake of security breaches that may undercut the market leaders in the space. With its hybrid cloud solution, Egnyte is another young cloud storage vendor that emphasizes advanced security and user experience.

The technology works a little differently than the competition — IT users can store information in their cloud of choice. IT gets to decide whether files from services like Amazon, Dropbox or Google are shared with a broad spectrum of users — or accessed by just a small subset. In a recent update to the product, file owners can set expiration dates on shared files and password-protect the URL to a shared link.

The company will use the funds to expand its 70-partner strong channel, aggressively push into the enterprise, and support service providers who implement file sync and share based on OwnCloud.

“There’s no one in this increasingly crowded market that can do the things OwnCloud does — integrate closely with existing IT, innovate at lightning speed and offer choice of storage locations,” said Bohn in a statement. “With those capabilities already in place differentiating it from the competition, we’re confident that OwnCloud will succeed.”

Cloud storage image via Jules 2000 // Shutterstock

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