On-Premise Cloud Storage/Sharing Startup, OwnCloud, Closes $2.5M Second Seed Round, Led By General Catalyst Partners

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OwnCloud Inc – the business built on the back of widely used (650,000+ users worldwide) open source file sync and share software ownCloud – has closed $2.5 million in second seed round funding. The round was led by current investor General Catalyst Partners, a growth equity and VC firm, with new investors also signing up. General Catalyst Managing Director, Larry Bohn, will now join ownCloud’s board.

OwnCloud said it plans to use the money for continued expansion of its 70+ partner strong channel, and also to “aggressively expand” its “large” enterprise and education customer base and support service providers who implement file sync and share based on ownCloud. The commercially supported version of the ownCloud offering launched back in April, and OwnCloud told TechCrunch it now has more than 100 customers and resellers for the offering.

The Boston-headquartered startup, which was founded last year, has previously raised $820,000 in first round seed funding, according to CrunchBase. Total funding to-date is now “close to $4 million”, according to the startup.

OwnCloud sells a hybrid cloud model that differentiates its offering from cloud storage apps such as Dropbox and Box. Instead of storing data at remote third-party data centers, the ownCloud server is deployed on a company’s own servers, or on their trusted service provider’s servers — allowing companies to utilize its cloud storage, syncing and sharing services within their existing security, storage, monitoring and reporting tools environment. OwnCloud’s commercial offering includes desktop and mobile clients which can be fully branded by the customer.

“We’ve been excited about ownCloud since its infancy, and after watching everything they’ve accomplished in a very short time, it validated our belief that they’d developed an exceptional team with an exceptional product,” said Bohn in a statement. “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. With those capabilities already in place differentiating it from the competition, we’re confident that ownCloud will succeed.”