Egnyte raises $6 million

Latest investment intended to ignite popularity of online file storage solution

Egynte announced today the closing of a $6 million Series A round of investments, made possible by both new investor Polaris Venture Partners and seed investor Maples Investments.

The Silicon Valley-based startup has since 2006 sought to offer the best solution in the online file storage market, one populated by competitors BackupAgent and Active Circle, among others. Though these both offer very good global solutions, Egynte hopes it can rise above the crowd with a new streamlined set of features.

Egnyte provides an On Demand File Server that enables centralized file storage, sharing within and outside the company and backup of employee computers. The File Server can be accessed via a browser based interface and also directly from the desktop similar to a local drive. Egnyte solutions allow users to access their files from anywhere and be able to search within the folders. When anyone creates or modifies a file, new versions get automatically created and notifications are sent to others. 

After revealing the Egnyte Local Cloud upgrade to its existing On-Demand File Server this past February, the company began really seeing interest rise, leading to this crucial securing of new funding. Installing Local Cloud onto an external storage unit allows Egnyte to continually keep a version of the server’s database locally stored.

Praising the company’s 15% growth rate per month for the past six months, CEO of Egnyte Vineet Jain gave his vision of a growing need for his company’s product for all different sizes of businesses: “As interest in cloud computing grows, we believe our technology solutions have enormous potential in reassuring businesses – both large and small -- that a cloud-based file server can be cost effective, reliable and secure.”

The funds raised will be focused on marketing and distribution of the complete file storage solution.